Source: Content from the Business Times, thank you.
U.S. President Trump is expected to announce tariffs on imported chips as early as this week, with market estimates suggesting rates could range from 25% to 100%. Industry insiders point out that these chip tariffs could have profound impacts on Taiwan Semiconductor Manufacturing Company (TSMC) and Taiwanese semiconductor companies, as the new rules may not rule out taxing based on the wafer manufacturing location (wafer out), leaving semiconductor companies holding their breath.
Industry players indicate that the Taiwanese semiconductor industry is viewed as a “silicon shield,” but Trump’s chip tariff policy may weaken this advantage. If tariffs are too high, U.S. customers may turn to other countries (such as South Korea or Japan) for alternative suppliers, or it may accelerate China’s self-manufacturing of chips. Meanwhile, the U.S. reliance on TSMC and geopolitical tensions, if they accelerate the execution of the “Made in America” goal, could lead to retaliatory measures from the tariffs, further disrupting the global supply chain.
Taiwanese IC design companies recently emphasized at a press conference that the reciprocal tariffs implemented in early April have not led to significant order adjustments, with customers adopting a stable wait-and-see attitude. However, regarding semiconductor tariffs, industry players believe that taxing based on wafer production location will significantly increase the import costs of key components for U.S. customers, primarily impacting U.S. chip manufacturers producing in Asia.
If the new system is as speculated by the market, changing to wafer out taxation may promote some production capacity to return to the U.S. However, during the supply chain restructuring process, uncertainties such as extended procurement cycles and delayed transportation are expected, which will inevitably affect corporate profits and the competitive advantage of U.S. chip manufacturers globally.
Industry players also emphasize that semiconductors are an upstream industry. Once chips are taxed, there is still a high likelihood and ability to pass costs downstream. However, since technology products do not consist of a single chip, after multiple application chips undergo cost transfer, the prices of end products will see significant adjustments. Therefore, the recent focus of Taiwanese semiconductor companies has gradually shifted from the ever-changing tariff policies of the Trump administration to concerns about the extent of the impact on end consumer demand.