New Tariff Impacts on Semiconductor Industry as Focus Shifts to Domestic Production
Hardware/News

New Tariff Impacts on Semiconductor Industry as Focus Shifts to Domestic Production

The U.S. government imposes a 100% tariff on computer chips imported from abroad, aiming to boost local manufacturing.

Recent developments in U.S. trade policy have resulted in a drastic move concerning semiconductor imports. President Donald Trump announced that a 100% tariff will be applied to computer chips made outside the U.S., affecting companies that traditionally rely on imports.

Apple CEO Tim Cook had recently visited the White House, committing an additional $100 billion in investments to the American economy. At a press conference following this visit, Trump noted:
“A lot of countries, a lot of companies are leaving various other places and they’re coming to the United States.” He declared that the new tariffs aim to discourage companies from relying on foreign production.

The Philippines and Malaysia express concern over how these tariffs will impact their economies. Dan Lachica, representing the Philippine semiconductor industry, warned that these tariffs could be “devastating,” as semiconductors make up a significant portion of exports from his country. Meanwhile, Tegku Zafrul Aziz, Malaysia’s Minister of Trade, stated the risks associated with losing competitiveness in the U.S. market could jeopardize their local firms.

The tariffs are primarily designed to promote domestic manufacturing within the U.S., with no additional charges imposed on companies that manufacture their products on American soil. The implications for semiconductor giants like TSMC and Samsung, which continue to expand operations in the U.S., remain to be seen as they adapt to this evolving trade landscape.

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