President Trump’s threat to impose 100 percent tariffs on semiconductors would most likely spare many of the world’s leading chip manufacturers.
The tariffs would not apply to companies that are building factories in the United States, or have promised to do so, he said on Wednesday.
Three of the world’s leading chip manufacturers are each making significant investments in U.S. operations: Taiwan Semiconductor Manufacturing Company, which makes most of the world’s advanced computer chips, and the South Korean memory chip giants Samsung and SK Hynix.
But aside from that, Mr. Trump’s statement raises many more questions than it answers.
Semiconductors are a complicated target for tariffs, involving a supply chain that is both global and specialized. Many chips are manufactured in Taiwan and South Korea, and then sent to another country, like Malaysia, for testing and processing. Next, the chips are put into consumer electronics — including iPhones, electric cars and smart home appliances — before they are sold all over the world. Most chips come into the United States embedded in electronics or components.
“No detailed provisions have been released,” said Joanne Chiao, an analyst at TrendForce, a market research firm in Taipei. “The scope and mechanism of the tariffs remain unclear.”
The United States imported about 13 percent of the world’s chips last year, mainly to drive the booming artificial intelligence and electric vehicle industries, said Jimmy Goodrich, a senior adviser for technology analysis at the RAND Corporation.
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The post Trump’s Threat to Hit Chips With 100% Tariffs Raises Big Questions appeared first on New York Times.
