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2mo ago

Trump Proposes High Tariffs on Taiwan-Made Chips, Raising Industry Concerns

The proposed tariffs aim to boost U.S. semiconductor production but could disrupt supply chains and increase consumer costs.

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Trump Taiwan Tariffs
An image about TSMC responds to Trump's threats that may cause electronic prices to skyrocket
TSMC chips shown on a wafer. Proposed tariffs on imported chips might force Apple to raise prices on some products.

Overview

  • President Donald Trump has proposed tariffs of up to 100% on imported semiconductors, targeting companies like Taiwan Semiconductor Manufacturing Company (TSMC).
  • The tariffs are intended to encourage domestic chip production but could raise costs for U.S. tech companies like Apple and Nvidia, which rely on Taiwan-made chips.
  • TSMC, a key supplier for Apple, has already invested $65 billion in U.S. manufacturing facilities, but these plants will not be fully operational for several years.
  • Taiwan's government emphasized the mutual benefits of its semiconductor partnership with the U.S. and expressed hopes for continued cooperation.
  • Industry experts warn that the tariffs could disrupt established supply chains and increase prices for consumer electronics, as U.S. demand for advanced chips remains heavily dependent on Taiwan.