How Taiwan's TSMC managed to escape Trump's 100% chip tariff
What's the story
Taiwan's leading chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), has been exempted from US President Donald Trump's new 100% tariff on semiconductor chips. The exemption was confirmed by Taiwan's National Development Council, according to AFP. It comes as a major relief for tech giants like Apple that rely heavily on TSMC for their products.
Exemption details
TSMC's US-based production shielded from tariffs
The exemption comes as a part of Trump's strategy to encourage domestic chip production. National Development Council chief Liu Chin-ching said, "Because Taiwan's main exporter is TSMC, which has factories in the United States, TSMC is exempt." This means that despite the hefty tariff on imported semiconductor chips, those produced by TSMC in its US-based factories will not be subject to this tax.
Impact on industry
Exemption to prevent price hikes, support US manufacturing
The exemption is expected to keep costs stable and prevent potential price hikes on a range of electronic products. This move also supports the broader goal of strengthening US-based manufacturing. The tech industry is hopeful that this will help keep supply chains running smoothly, especially in light of recent global chip shortages.