That means for companies looking to import chips from TSMC, they'll have to pay that 15% fee, not TSMC. For companies looking to manufacture chips in America, they're still reliant on key raw materials for chip manufacturing. Broad tariffs raising the cost base for everything imported into America means raising prices on those key materials, in turn making U.S.-based chip manufacturing more expensive for everyone involved.
This comes at a poor time for Intel, which is hoping to bring its cutting-edge facilities online as fast as possible. Its planned Fabs have potential chip complexity and yield advantages over even some of TSMC's best facilities, though they have yet to start production. Increasing the costs of these raw materials and further squeezing supply chains is not ideal for such a venture.
Nothing is clear about these new tariffs, and there's a distinct possibility that they don't apply to semiconductors and electronics, or at least, aren't designed to.
The new tariffs are being brought in as part of Section 122 of the U.S Trade Act of 1974, which gives the executive branch limited and temporary ability to apply tariffs to imported goods. But as the Singaporean Ministry of Trade highlights , some products should be excluded from this Section.
"Certain types of goods are exempted from the Section 122 tariffs, such as energy and energy products, pharmaceuticals and pharmaceutical ingredients, certain electronics, certain aerospace products and metals used in currency and bullion, amongst others," it said in a statement over the weekend. "In addition, semiconductors and pharmaceuticals are not subject to the Section 122 tariffs, as they may be the subject of Section 232 tariffs that have not yet been imposed."
However, as White Case LLP highlighted in January , the Trump administration has already leveraged Section 232 for 25% tariffs on a limited selection of semiconductors imported into America. Those tariffs could easily be expanded with the legal justification that it's for matters of national security . Trump has previously used similar justifications to limit imports of Steel and Aluminum during his first term.
Although somewhat expected, the U.S. Supreme Court's ruling has thrown the Trump administration into chaos, and it has responded in kind. The new tariffs are sweeping, confusing, and very temporary, at least for now. It throws into question all existing deals, which were less foundationally secure than traditional trade agreements anyway.
In the near term, though, it's looking like some of the greatest beneficiaries of America's further turn inwards towards self-sufficiency may be helping anyone and everyone but America itself.
Jon Martindale is a contributing writer for Tom's Hardware. For the past 20 years, he's been writing about PC components, emerging technologies, and the latest software advances. His deep and broad journalistic experience gives him unique insights into the most exciting technology trends of today and tomorrow. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-17/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Jon Martindale Freelance Writer Jon Martindale is a contributing writer for Tom's Hardware. For the past 20 years, he's been writing about PC components, emerging technologies, and the latest software advances. His deep and broad journalistic experience gives him unique insights into the most exciting technology trends of today and tomorrow.
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/trump-tariff-turbulence-risks-handing-tsmc-a-win-over-american-chip-manufacturers-prior-exemptions-for-onshoring-manufacturing-may-hinder-the-likes-of-intel#main
- https://www.tomshardware.com
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