The TSMC-Trump deal won't eliminate the danger of "Taiwan chip tariffs," as it is now claimed that the tariffs could potentially be applied to electronic devices containing the chips.
TSMC's Expansion Into The US Won't Make Them Rid of Trump's Tariff Fears, As The Administration Might Adopt A New Approach
Well, it seems like TSMC's recent deal with the Trump administration won't completely remove the dangers of tariffs, as according to WIRED, citing unnamed sources, Trump could potentially impose additional taxation on chips made in Taiwan, but in an interesting manner. Instead of just taxing chip imports, the US might impose tariffs on the products using the chips, which means all consumer devices employing TSMC's semiconductors could get expensive, up to 100%, which will be devastating for the consumer industry.
But the deal has not ended deliberations inside the Trump administration about potentially imposing tariffs as high as 100 percent on TSMC and other Taiwanese chipmakers, according to a person familiar with the matter. One version of the plan, the person says, would involve placing import duties not just on Taiwanese chips themselves but also on electronic devices that contain them, such as Apple iPhones.
- WIRED
For those unaware, the Trump administration has recently signed a deal with TSMC, as the Taiwan giant would invest up to $165 billion, opening up new facilities in Arizona along with two advanced packaging centers and a major R&D facility, marking the most significant single foreign investment in the history of the US. The deal was announced at the White House, with Trump being accompanied by TSMC's CEO C.C. Wei, declaring that the US is serious about bringing chip production to domestic lands, even if it means taking dire measures.
Given that the Trump administration imposes tariffs on devices employing Taiwan chips, every mainstream tech product could see a price hike of as high as 100%. This move does make sense, given that the US imports "packaged" products using TSMC's chips, not the semiconductor itself. But for the average consumer, this is awful news and will likely disrupt the technology markets.
Nothing is certain for now, but it seems like the Trump administration won't be easy to deal with for companies like TSMC since they'll need to do much more. And, given that tariffs on Mexico, Canada, and China are now live, it won't be long before the scope expands to countries like Taiwan since Trump has expressed in the past that the nation is stealing US tech.
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.
Follow Wccftech on Google to get more of our news coverage in your feeds.
