President Donald Trump says he's imposing a 100% tariff on computer chips— a move that raises the specter of higher prices for electronics, autos, household appliances and other essential goods that depend on the processors.
Do you have examples of individual components being swapped to avoid tariffs?
For PC parts, it would be very inexpensive to make a cheap mobo, chassis, and UX. E.g., they could put a high end server CPU or something into one of those small handhelds (like Anbernic devices), and then move it to an actual server in the US. Those chips can run more than $1k, while those Anbernic devices tend to run a couple hundred, so the small overhead would absolutely be worth being taxed at 15% instead of 100%.
Surely regulators have learned from the Ford Transit thing…
Do you have examples of individual components being swapped to avoid tariffs?
I don’t, but these new tariffs don’t match what we’d had before.
The closest I can think of is one scheme to avoid aluminum import tariffs. A company cut bar stock into longer lengths and did the cheapest/fastest/worst job of spot welding them together into the shape of a finished good (a chair or table, can’t remember). The “chairs” were imported, then the receiving company simply broken the simple spot welds and fed the again-bar-stock into manufacturing processes.
For PC parts, it would be very inexpensive to make a cheap mobo, chassis, and UX. E.g., they could put a high end server CPU or something into one of those small handhelds (like Anbernic devices), and then move it to an actual server in the US.
It would be cheaper, but not inexpensive. This would require setting up an entire manufacturing assembly line to create and assemble the carrier product, and a reciprocal dis-assembly line on the other side to reclaim the desired CPU part. Its doable, but quite a bit of additional expense when the straight non-bypass method is a robot removing a CPU from a tray and inserting it directly into the finished product. Would it be worth it? Potentially yes! That’s why I made my first post here on the topic.
The “chairs” were imported, then the receiving company simply broken the simple spot welds and fed the again-bar-stock into manufacturing processes.
Lol. That’s basically the same thing as I suggested for PC part swaps.
Thanks for the example. Let’s see what happens w/ the tariffs and how industry responds, because I highly doubt datacenters would be happy paying 2x for their parts.
Do you have examples of individual components being swapped to avoid tariffs?
For PC parts, it would be very inexpensive to make a cheap mobo, chassis, and UX. E.g., they could put a high end server CPU or something into one of those small handhelds (like Anbernic devices), and then move it to an actual server in the US. Those chips can run more than $1k, while those Anbernic devices tend to run a couple hundred, so the small overhead would absolutely be worth being taxed at 15% instead of 100%.
Surely regulators have learned from the Ford Transit thing…
I don’t, but these new tariffs don’t match what we’d had before.
The closest I can think of is one scheme to avoid aluminum import tariffs. A company cut bar stock into longer lengths and did the cheapest/fastest/worst job of spot welding them together into the shape of a finished good (a chair or table, can’t remember). The “chairs” were imported, then the receiving company simply broken the simple spot welds and fed the again-bar-stock into manufacturing processes.
It would be cheaper, but not inexpensive. This would require setting up an entire manufacturing assembly line to create and assemble the carrier product, and a reciprocal dis-assembly line on the other side to reclaim the desired CPU part. Its doable, but quite a bit of additional expense when the straight non-bypass method is a robot removing a CPU from a tray and inserting it directly into the finished product. Would it be worth it? Potentially yes! That’s why I made my first post here on the topic.
Lol. That’s basically the same thing as I suggested for PC part swaps.
Thanks for the example. Let’s see what happens w/ the tariffs and how industry responds, because I highly doubt datacenters would be happy paying 2x for their parts.