Trump Plans 100% Taxes on TSMC Chips from Taiwan to Focus on Domestic Production

The Trump administration has announced a significant policy shift aimed at increasing domestic semiconductor production by imposing tariffs on chips manufactured in Taiwan.

Trump Advocates Tariffs to Revitalize US Semiconductor Manufacturing

Recent statements indicate that Donald Trump is moving forward with plans to impose tariffs on foreign-made semiconductors, particularly those from Taiwanese manufacturers. During a House Republican conference, Trump argued that implementing tariffs on these critical technologies would promote domestic production, compelling companies like Taiwan Semiconductor Manufacturing Company (TSMC) to establish manufacturing facilities within the United States.

In particular, in the very near future, we’re going to be placing tariffs on foreign production of computer chips, semiconductors, and pharmaceuticals to return production of these essential goods to the United States. They left us and went to Taiwan.

We want them to come back. And we don’t want to give them billions of dollars like this ridiculous program that Biden has given everybody billions of dollars. They already have billions of dollars. They’ve got nothing but money Joe. They didn’t need money.

They needed an incentive. And the incentive is gonna be they’re not gonna wanna pay a 25, 50 or even a 100 % tax.

– Trump via X

This strategic move aligns with Trump’s prior criticisms of the CHIPS Act, which he has labeled a “flawed initiative”under the Biden administration. He posits that instead of providing genuine incentives for U. S.semiconductor growth, the CHIPS Act merely distributes funds without tangible benefits for American markets. Trump’s rhetoric suggests that companies opting for overseas production, such as TSMC, should face penalties through substantial tariffs.

TSMC has kicked off 2nm trial production at its second plant

Although specific details regarding the tariff implementation remain unclear, Trump indicated that these tariffs could reach as high as 100%.The potential for such high tariffs raises concerns within the semiconductor and consumer electronics sectors, as TSMC produces chips integral to many mainstream devices. The introduction of tariffs could result in increased prices for consumers, ultimately stymieing growth in the U. S.technology market, particularly affecting costly advancements like TSMC’s cutting-edge 3nm production processes.

Despite these proposed tariffs, the enactment of the CHIPS Act has stimulated some positive movement in domestic manufacturing. TSMC has already initiated the establishment of a fabrication facility in Arizona, producing 4nm chips and planning future advancements towards 2nm technology within the decade. This demonstrates TSMC’s commitment to enhancing the U. S.semiconductor landscape, yet it remains uncertain if imposing these tariffs will successfully drive further domestic production or simply lead to increased costs for American consumers.

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