The tariffs would ensnare cutting-edge smartphone and PC-related chips for Apple, AMD and Nvidia if enacted. But Trump is betting his plan will bring more chip production to the US.

President Trump has announced plans to impose tariffs as high as 100% on foreign-made computer chips, specifically targeting Taiwan’s TSMC, a major supplier to companies like Apple, Nvidia, and AMD. Trump criticized the CHIPS and Science Act, signed by President Biden, which allocated $52 billion to boost U.S. semiconductor manufacturing, arguing that companies like Intel don’t need funding but incentives like steep tariffs to force domestic production. While this move aims to bring semiconductor manufacturing back to the U.S., critics warn it could lead to significant price hikes for consumer electronics, as it takes years to establish chip factories. TSMC’s chips are deeply embedded in global supply chains and are often sent to other countries for assembly into consumer electronics. This complicates Trump’s tariff plan and risks increasing U.S. consumers’ prices.

My Take

Tariffs might accelerate reshoring, but they risk disrupting global supply chains and inflating costs in the short term. A more effective approach would combine targeted incentives with clear requirements for companies to invest in U.S. manufacturing, ensuring faster results while minimizing business disruptions and consumer price increases.

#Semiconductors #CHIPSAct #TechnologyPolicy #USManufacturing #TSMC #SupplyChain #Trump #TechInnovation #AI #Manufacturing

Link to article:

https://www.pcmag.com/news/trump-to-tariff-chips-made-in-taiwan-targeting-tsmc

Credit: PCMag

This post reflects my own thoughts and analysis, whether informed by media reports, personal insights, or professional experience. While enhanced with AI assistance, it has been thoroughly reviewed and edited to ensure clarity and relevance.