Trump’s tariffs are expected to collide with Taiwan’s semiconductor market in the coming weeks, with chip prices rising by up to 15%, disrupting consumer technology manufacturing.
That’s why Trump is the only follower of “USA” chips, so it’s why his tariff policies speed up the process of domestic development
Well, Taiwan seems to be hit by tariffs soon, which isn’t official, but the CTEE report says that given Trump’s stance on raising chips from Taiwan, the country should expect them He claims that is. Just recently, I reported on how Trump imposed tariffs on Mexico, Canada and China in the first stages. Today, Taiwan appears to be under the US radar and the prices of consumer technology will rise significantly, given that tariffs are being imposed on the country.
Given the tariffs are in place, semiconductor prices could rise by up to 15%, and it is reported that all existing orders from the big tech giant will likely be revised. . The US has a special focus on domestic chip production, and it is argued that tariffs will help companies such as TSMC rush the process of setting up facilities in the US to avoid additional taxation.
Trump has insisted in the past that Taiwan is “stolen our technology” and that they should pay the country to do so. Therefore, the possibility of tariffs is very large and creates a major problem for the TSMC. This has forced them to secure domestic chip production, which was first launched by the Biden administration under the Chips Act.
TSMC has its Arizona facility as a major US project, and the company has already begun production of 4NM and plans to expand by up to 2nm. However, it is argued that the profit margins for US facilities are much lower than those in Taiwan. That is, if the US does not develop subsidies, production will not be sustainable in the long term. This will result in the TSMC implementing price bumps for mature nodes such as 7nm or higher, and if customs policies are in effect, the Taiwanese giants will struggle.
Trump’s customs policy is said to be a negotiation tool for now, but given its negative impact on supply chains, the consumer technology industry is not at all useful.
