It is no surprise/expected and would be interesting to see the actions from intel, Micron, tsmc, Samsung, SK hynix and booming Chinese foundry companies upon this change.
Trump says that chip tariffs are starting 'very soon'
How high will the tariffs be?www.tomshardware.com
In the news today - Intel/TSMC JV
- Thread starter ashwinbrao1
- Start date
Personally, I think broader tax doesn't make much sense. The tax should not target average person. But component tax on semi conductor would make sense as that will expedite relocation of high value manufacturing supply chain. It will also be a political win.
Admittedly I do not know much about tariffs so can someone explain to me why a bunch of countries have tariffs against US products in the first place? And, more importantly, why is the US just now responding to them? I really hate to see the semiconductor industry get caught up in this but seriously, why does the US have a trillion dollar trade deficit?
This is probably more believable deal to me. TSM already did a deal with AMKOR for advanced packaging iirc. May be they are unloading some stuff to Intel Foundry to help with capacity constraints or to bypass tariff. This collaboration is probably what the news media is (mis)reporting as a JV.
To do packaging in the US actually increases the trade deficit between US and TW.
Making wafer in Arizona and packaging in Taiwan means TW buys a lot of wafers from the US. As long as the next stop (EMS or assembly lines) isn’t US or TW. This reduces US deficit with TW and thus the tarrif.
Anyway, to do packaging in the US is a political decision not a economic one.
I agree it is political, but it is also what customers want. TSMC would not be in AZ without customer demand/support. Customers know that AZ based wafers will cost more and I'm sure packaging is the same. For better or worse semiconductor manufacturing is coming back to the US, absolutely.