- cross-posted to:
- technology@beehaw.org
- worldnews@lemmy.ml
- cross-posted to:
- technology@beehaw.org
- worldnews@lemmy.ml
Summary
Trump plans to impose tariffs of up to 100% on semiconductors manufactured in Taiwan, aiming to push U.S. tech companies like Apple, Nvidia, and AMD to produce chips domestically.
The tariffs target Taiwan’s TSMC, a key supplier, despite its partial U.S. production in Arizona.
Trump criticized Biden’s CHIPS Act for funding companies like Intel and proposed tariffs as an alternative incentive.
Experts warn the move could raise prices for electronics as most TSMC chips are assembled in Asia before export to the U.S.
You must log in or register to comment.
what a fucking idiot.
wants ‘made in usa’ chips.
usa literally can’t make them… only certain parts of them… and not near enough to ‘go around’ and meet even just the domestic demand. not now, not in a decade. not in two decades. it ain’t happening.
criticizes efforts to get more of them made here. reasoning being, of course, equal parts of: something biden did that’s seen as good and he dont like that, and money being spent that could be funneled to him and his comrades and donors instead).
instead wants to put a 100% tax on imports as ‘punishment’. which could be the trigger that puts the economy into a tailspin that hasn’t been seen in nearly 100 years. semiconductors are that important, taiwan makes that many of them, and the usa does not.
you know damn well those tariff funds would never go towards improving american production capabilities… it would just fund more tax cuts for his wealthy donors.
Nvidia about to be selling through another country as Mvidia with their Shifty 90 series.
Señor Envidia, and he has a mustache!
Nvidia, AMD, Qualcomm and all other fabless chip designers must be thrilled.
Taiwan must be thrilled too. That silicon shield may crack earlier than expected.
Fortunately chips aren’t in many products so this should really help the cost of living. Great work!
/s
Hooray! I was getting worried about gaming GPUs becoming affordable again now that they’re winding down the “chip shortage” excuse!
Good thing we can count on Trump to price us out of the few pleasures in life we cling to in order to tolerate the world he’s ruining! 😮💨🤬
Are tarrif chips like some sort of modern day food stamp?
Yeah, let them just fire up the chip factory right away. 🙄
I want more domestic manufacturing, but it doesn’t happen overnight.
Yeah, we’ll be able to build usable chip factories here in the states in no time. That surely doesn’t take several years to get set up.
Especially when the dumbass halted the CHIPS program which was intended to do precisely that thing.
And they have to buy the machines for this in Europe, anyway.
[…] proposed tariffs as an alternative incentive.
He learned one word and basis his entire view on economy on it.
He learned how to pronounce a word but only has concepts of its meaning. He still thinks the exporter pays tariffs.
Prediction: In under a month they’ll cut a deal to give American companies huge discounts and all pretense of “encouraging US production” will evaporate.
It’s pretty funny how this is an attack that could backfire extremely.
Almost all of the advanced chips are made using ASML EUV machines. Which is a Dutch company.
If Trump continues on this path of self-destruction, attacking countries and companies around the world, the US might just end up with sub-par chip production like China has. (They have old ASML machines and aren’t getting any new ones). TSMC is one of the biggest partners of ASML and has a LOT of cards to play to get ASML to not supply any machines to the US.
It’s absolutely horrid that a boy like Trump has any power and doesn’t even know that his attacks are nothing more than a punch to his own balls. A normal politician would work on alliances to get chip production going in the US before fucking over all the companies relying on chips. Stuff like subsidies for local chip production are not news worthy enough for him to get any kick out of so he just flexes his power.
It’s an “attack” that Biden had the idea for first. We’ve been working on it for a couple years now already, and the plants are already being built in the US. Nobody thinks of it as an attack.
But.
It’s not working out, because the Taiwanese teaching us how to do it think we’re all lazy, and the Americans learning think the Taiwanese are slave drivers.
It’s not working out, because the Taiwanese teaching us how to do it think we’re all lazy, and the Americans learning think the Taiwanese are slave drivers.
I’m choosing to believe this partly because on my own preconceived notions, but mostly because it’s funny.
Biden did not “attack” TSMC, he developed a plan to bring chip Manufacturing to the US. Orange man’s attack, an actual economic attack, has no actual plan. These attacks will send industries into free fall and he’ll pull the trigger flippantly, right now (the moment when he thinks he has just an idea of his own), long before the market will be able to correct and without taking any steps to mitigate a disaster. Maybe reactive half measures later, but disaster will happen all the same.
I know Biden didn’t attack TSMC, hence the quotation marks around the word.
I got the sense that was what you meant from the rest of your post, although I take it others did not get it based on down votes.
The reason for doing this is specifically because it’s so damaging to the US. Surprise surprise, a government hand picked by an adversary is intentionally destructive.
This is so silly.
Trump: I’m going to put a 100% tariff on your goods if you don’t start building them here.
TSMC: Yeah, we’re doing just that next year. We’re already fabbing them there in the US.
2026 rolls around and the final part of TSMZ in AZ is complete
Trump: I’m such a fucking genius.
And Republicans will eat this shit up.
Why do you think he decided to do it?
Let’s explain tariffs so that even a baby like trump could understand.
If an item is sold for $1 and you put 100% tariff on it, it now costs $2 for a consumer in the US to buy. The government doesn’t get to take the $1 that the company is selling it for, they still make their $1 regardless of the tariff. All this does is force the US buyer to pay more.
I guess he could understand it if this is designed to funnel more money to the government but it’s gonna start impacting his tech bro handlers.
Yes, but the goal of a tarrif is to create incentives for onshore investment and development to come it at a $1.50 price point. We, in general, have moved past that by using subsidies to not create issues for the economy in the short term.
They can say the goal is whatever the fuck they want it to say. The important thing is the outcome, and we know how this turns out.
I think “the purpose of a system is what it does” is going to get a lot of use this administration
It makes a lot of sense if the government money is now his own money
What ends up happening in reality is that the tariff cost is effectively shared between the company selling and the customer (but not evenly). The company realizes that sales will plummet if the new price is $2, so they shave margin on their end to bring the price down to e.g. $1.75. But there’s obviously a lot of complexity behind exactly how much of the tariff cost is borne by the customer and the seller and it will vary by industry.
Correct, but the Rabbit Hole goes deeper.
The company will only reduce margin if they expect to lose volume and if they expect that they can regain sufficient volume by reducing margin to make up for the loss in margin.
And the reduction in volume will only happen if there are alternatives for consumers, including the alternative to not buy.
When consumers need the tariffed good regardless of price, the company will not reduce margin.
(Yeah, it’s complex math).
Long story short, someone else said it better, a tariff works well, with little impact on consumers, when there is a comparable non-tariffed alternative.
At the other end of that spectrum, i.e. an essential good with no non-tariffed alternative, the tariff cost is fully borne by consumers.
Finally, in the case of TSMC, their main product right now are the most advanced AI chips for which there is no US alternative. And US Big Tech needs volume that the US cannot produce.
Trump is basically taxing big tech.
I just want to add one thing, the people in the country that issue the tariff also have no incentive to ignore the new price floor that the tariff represents. Instead, they will set their price to just below the new tariff floor and pocket what ever difference there is
The guy doesn’t realize that all these companies are funding our EUV technology. If one falls so do the others. Our meaning our part. The whole EUV thing is a total ecosystem that is globally connected. The thing barely works at all according to science and people are working day and night to make it work more reliably. On top of thar, now they have to put up with less profit.
But sure! Chips!
Chip chip chip! C’mon! Chip chip chip!
