Trump’s 100% Tariff May Propel Taiwan’s Semiconductor Trade to the U.S., ETCFO
New Delhi [India] August 8 (ANI): A proposed 100 per cent US tariff on semiconductor imports, introduced by President Donald Trump, might power a strategic shift of Taiwan’s chip manufacturing panorama, probably pulling extra of the island’s semiconductor operations onto American soil, studies Focus Taiwan.
Liu Pei-chen, a researcher on the Taiwan Institute of Financial Analysis, warned that Trump’s tariff risk indicators a shift from incentive-driven industrial coverage to at least one outlined by power. “Now he’s deploying the ‘stick’ technique, imposing punitive tariffs except corporations spend money on the US,” she advised Focus Taiwan.
In accordance with Liu, this twin stress, tax incentives for US-based manufacturing and tariffs for imports, might push international chipmakers to hurry up their American investments. That shift may drive up prices all through the semiconductor provide chain and, ultimately, client electronics costs.
She additionally famous that whereas the US desires to spice up its home chip ecosystem, gaps within the provide chain, particularly for tools and supplies, imply constructing fabs in America stays pricey. “This might increase costs and create uncertainty for future market demand,” she stated.
Trump’s sudden declaration on Wednesday that “we’ll be placing a tariff on of roughly 100 per cent on chips and semiconductors” has despatched shockwaves by way of the worldwide tech sector. Although quick on specifics, the assertion carried a transparent message: corporations that manufacture within the US can be spared, whereas foreign-made chips can be penalised.
But not all chipmakers face the identical threat. Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, could keep away from the brunt of the tariff. Derek Scissors, senior researcher on the American Enterprise Institute, advised Focus Taiwan that TSMC is probably going “on the entrance of the road for an exemption,” due to its large funding within the US.
“There is no means TSMC goes to face a tariff, not less than on the merchandise it is making within the US,” Scissors stated, including that the tariff plan introduces vital uncertainty, which might disrupt commerce and funding choices throughout the trade.
That market confidence confirmed up instantly. Following Trump’s announcement, TSMC’s shares in Taipei soared practically 5 per cent to shut at an all-time excessive, whereas its American depositary receipts (ADRs) jumped 4.86 per cent later within the day.
Earlier in April, Trump’s blanket tariff coverage focused Taiwan with a 32 per cent levy, later diminished to twenty per cent. That is nonetheless greater than the 15 per cent levied on Japan and South Korea. Scissors referred to as the aggressive drawback “really fairly small,” however acknowledged that Taiwan may provide extra US funding to carry the speed down. (ANI)
