Trump to impose 25% to 100% tariffs on Taiwan-made chips, impacting TSMC

[thedezzick@lemm.ee]

The US could probably do it... With hundreds of billions of government incentives to rapidly stand up the entire supply chain... Which would still take at least a decade. The machines that TSMC uses are made by ASML and themselves have a global supply chain of over 500 separate companies and are backordered for several years due to their inherent value.

In short, no.

[thebat@lemmy.world]

Is that Roman salute?

[apfelwoischoppen@lemmy.world]

It's already fabbing chips

[apfelwoischoppen@lemmy.world]

They have a chip fabrication factory in Arizona in the US.

[voroxpete@sh.itjust.works]

But it cannot produce the higher end chips. That was very specifically part of the agreement. They're only willing to fab low end product outside of Taiwan.

I was being very specific when I said "their best processes."

[floofloof@lemmy.ca]

Looks like an American salute to me.

[floofloof@lemmy.ca]

Intel has been trying to get itself into that position for years, with huge amounts of public money being pumped in, and it is struggling so badly the company lost patience and fired the CEO who had the best chance of getting this done. As others have said, it doesn't look like TSMC is about to let its US fabs do the most advanced stuff even if they could.

So this move will just make the best technology less accessible to the USA and tech products more expensive for Americans, for the foreseeable future.

[thejml@lemm.ee]

He emphasized that the proposed tariffs would leave companies with no choice but to invest in domestic production facilities to avoid high taxes.

No choice except the obvious: Pass the cost of the Tax into the customer because there’s no way they’re going to spend billions to stand up a US fab plant anytime soon.

[gray@pawb.social]

People downvoting you can’t do a quick search:

https://www.tomshardware.com/tech-industry/apple-will-soon-receive-made-in-america-chips-from-tsmcs-arizona-fab-company-in-final-stages-of-quality-verification

TSMC is absolutely up and running already in the US.

[dukatos@lemm.ee]

So, US is finally getting EU hardware prices

[acidbath@lemmy.world]

From what I understand one of the things that is protecting Taiwan from China is their fabs. They will fight for their lives to make sure they are protected by this.

As someone with family over in Taiwan, I really want them to be okay. Things are getting depressing globally.

[apfelwoischoppen@lemmy.world]

OK. It is ahistorical and hyperbolic to say they may never do that. They also have their fabs i n Taiwan rigged to self destruct if they get invaded. They are setting up shop in a different country. As fab dies shrink they get harder to make, they are building expertise somewhere else in case.

[ag10n@lemmy.world]

I wouldn’t say 5nm and 3nm are low end

https://pr.tsmc.com/english/news/2977

https://www.tomshardware.com/tech-industry/tsmcs-arizona-fab-21-mass-produces-4nm-chips-at-a-higher-price-than-taiwan

[cheems@lemmy.world]

Yeah but what corporation is going to think of the obvious solution?

[philpo@feddit.org]

And in two weeks there will be a special executive order to free his Tech Bro oligarch buddies from these tarrifs so Meta and Elmo are not forced to pay a dollar extra.

[supersynthia@lemmy.world]

I say this not to be reactionary or pro trump.

Is there no way to use lesser nodes for wider applications? While there are processes that need as much speed as possible, I feel like what gives Taiwan semiconducting industries such great business is the fact that code optimization isn't as cost effective as the latest and greatest chips.

I HOPE these tariffs inspire better, more secure code to make less efficient chips more viable. Like a lemon to lemonade situation.

[humanspiral@lemmy.ca]

To avoid this, the administration would need to introduce exemptions, just like it did with China-made graphics cards and motherboards years ago.

If that is the approach, it would ensure tech monopoly for 5 years for all of the oligarchy that kisses his diaper.

More major issues with this is that while high end Chip production may be high value manufacturing, motherboards, electronics, and assembly is not, and there would likely be an export of chips to somewhere else to import finished products.

US/Trump explicit hatred for world is likely to get retributive tariffs, that makes chip plants unproductive investments, though Trump is hoping to have high foreign ownership/investment in those plants.

In 2022, the export share of Taiwan integrated circuits to US was just 2.46%, although in early 2024, total (all goods) Taiwan exports had US take lead over China for the first time.

That both US and China are decoupling from Taiwan is going to reduce any geopolitical subservience impulse that provokes a war with China. Taiwan may get closer to China instead of begging for more US "friendship".

[humanspiral@lemmy.ca]

I believe the plant is operational, as they have bragged about "great production tests". What I haven't heard of is any orders placed for that plant's products.

[infinitevalence@discuss.online]

More so when these plants take 10 years to build. They will pass along the cost and just wait him out.

[manomorphos@lemmy.world]

People hyped for the Nvidia 5000 series better get their cards before prices skyrocket across the board. I guess graphics cards weren't expensive enough or something.

Really though, no brand is safe from the soon-to-be insane prices if this does go through as a blanket tariff without exceptions. Better to err on the safe side and upgrade soon as you can, if you need to and you're not too wealthy to care.