New Delhi [India] August 8 (ANI): A proposed 100 per cent US tariff on semiconductor imports, introduced by President Donald Trump, may pressure a strategic shift of Taiwan’s chip manufacturing panorama, probably pulling extra of the island’s semiconductor operations onto American soil, experiences Focus Taiwan.
Liu Pei-chen, a researcher on the Taiwan Institute of Economic Research, warned that Trump’s tariff risk alerts a shift from incentive-driven industrial coverage to 1 outlined by pressure. ‘Now he’s deploying the ‘stick’ technique, imposing punitive tariffs until firms spend money on the US,’ she informed Focus Taiwan.
According to Liu, this twin strain, tax incentives for US-based manufacturing and tariffs for imports, may push world chipmakers to hurry up their American investments. That shift would possibly drive up prices all through the semiconductor provide chain and, finally, 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 gear and supplies, imply constructing fabs in America stays pricey. ‘This may 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 the worldwide tech sector. Though brief on specifics, the assertion carried a transparent message: firms that manufacture within the US might be spared, whereas foreign-made chips might be penalised.
Yet not all chipmakers face the identical danger. 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, informed Focus Taiwan that TSMC is probably going ‘on the entrance of the road for an exemption,’ due to its huge funding within the US.
‘There’s no means TSMC goes to face a tariff, a minimum of on the merchandise it is making within the US,’ Scissors stated, including that the tariff plan introduces vital uncertainty, which may disrupt commerce and funding choices throughout the business.
That market confidence confirmed up instantly. Following Trump’s announcement, TSMC’s shares in Taipei soared almost 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’s nonetheless increased than the 15 per cent levied on Japan and South Korea. Scissors known as the aggressive drawback ‘truly fairly small,’ however acknowledged that Taiwan would possibly supply extra US funding to deliver the speed down. (ANI)