Trump's tariffs are expected to hit the Taiwan semiconductor markets in the upcoming weeks, with chip prices soaring by up to 15%, disrupting consumer tech manufacturing.
Trump Is a Sole Believer In "Made In USA" Chips, Which Is Why His Tariff Policy Will Speed Up The Process of Domestic Development
Well, it seems like Taiwan will get hit with tariffs very soon, and while this isn't official, a report by Ctee claims that the nation should expect them, given Trump's stance towards sourcing chips from Taiwan. Just recently, we reported on how Trump has imposed tariffs on Mexico, Canada, and China in the first stage, with even more harsh regulations in place if the nations respond. Now, Taiwan looks to be under the US's radar, and given that tariffs are imposed on the country, consumer technology prices will rise massively.
It is reported that given that tariffs into place, semiconductor prices could rise by up to 15%, and all existing orders from the big tech giants would likely get revised, which means that the BoM will get a lot more expensive for upcoming and existing products. It is claimed that the US specifically focuses on domestic chip production, and the tariffs will help companies like TSMC to haste up the process of setting up facilities in the US to avoid extra taxation.
Trump has claimed in the past that Taiwan is "stealing US tech" and that they should pay the country for doing so. Hence, the possibility of tariffs is pretty massive, creating massive troubles for TSMC, which will now be forced to ensure domestic chip production, which was initially started with the Biden administration under the CHIPS Act.
TSMC has its Arizona facility as the primary project in the US, with the firm already initiating 4nm production, with plans to expand up to 2nm. However, it is claimed that the profit margins in US facilities are way low compared to that of Taiwan, which means production won't be sustainable in the long run if the US doesn't develop subsidies. With this, it is safe to say that TSMC will implement a price bump for more of its mature nodes like 7nm and above, and if tariff policy comes into play, well the Taiwan giant will have a tough time.
While Trump's tariff policy is said to be a negotiating tool for now, it certainly won't help the consumer tech industry at all, given that it has an adverse effect on the supply chain.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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