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Second, the tariffs can begin to produce chips in the United States only if foreign companies are cheaper than doing together. However, there is a little guarantee of higher American labor costs and the absence of the country’s developmental chain, no years or decades, these foreigners will be affordable. When confronting US tariffs, Taiwan can make more meaning to produce as a TSMC, instead, instead, instead of production, instead of production, it can mean more to transfer production to a third country.
However, the Trump management can effectively produce the US in the United States, only to expand tariffs to all countries that effectively effectively. Alternatively, tariffs can apply to any final products that contain Taiwan chips.
The last thought is a significant violation of the semiconductor industry. There may be dozens of chips responsible for different features in a single smartphone; A car can potentially be thousands. Which of them is the components from Taiwan, how many taxes of taxes of these components can find and find a heavy burden on products.
Semiconductor companies are likely unprepared for such a scenario, especially the products are more than past tariffs. “The industry in the world has never been engaged in such tariffs with such chip tariffs like this,” says Alias-based semiconductor industries publishing public comments named after Alias HSU Mei-HU. “This is theoretically possible in practice, but it is almost impossible.”
Politics will ask Apple to the price of many types of chips used by each of the applicators of Apple, to determine the appropriate amount of tariffs to be announced. “And after the announcement checks it how do customs check it? I know the customs?” HSU says.
Biden’s management previously discussed the component tariffs against Chinese chip producers, to weaken the country’s semiconductor industry and protect the US national security. However, one of the main arguments against the idea, it would be logically difficult, Miller said.
Miller says that this time the component tariffs in Washington, this time it should be taken into account in Washington, but it will be more difficult to apply them over Taiwan chip imports. “If you were interested in the administrative complexity of the component tariffs against each other, you must worry about administrative complexity,” he says.
The biggest losers
TSMC stands to lose less than potentially US tariffs than other companies due to unparalleled weight in industry. TSMC is currently in about 90 percent of the most advanced chips in the world, and production lines are currently working with full capacity. If Trump lifts tariffs and has to increase the prices of TSMC, the company may lose some orders to rivals, but experts say this is not really a great concern.
However, it is likely that TSMC’s customers will be difficult to quickly find alternatives. Companies such as Samsung and Intel would be risky to remove certain extent, valuable and evaluation and adult production processes compared to a certain degree of high-level chip production. Thus, instead of going for another chip manufacturer, American companies such as Apple and Nvidia can maintain a bill for TSMC products and can eventually move their customers to higher expenses.
