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.
Every single news organization seems to be fudging what “build in the US” means, and no one seems to dare ask Trump what he means by that. So all of these articles are ambiguous and confusing. We have to assume he means to bully companies into making their own chips in the USA, which shows that Trump has no grasp of the difficulties involved in doing that. All he will achieve is to disrupt the business of all electronics companies doing business in the USA and raise the price of their products.
Edit: US chip manufacturing seems to have increased over the last few years, with Intel making a lot of chips in the USA and TSMC making plenty of AMD chips in its Arizona fab too. So perhaps the goal of Trump’s move isn’t so crazy, but the implementation is so crude it will cause more problems than it solves, at least in the near future.
They build their manufacturing industries since the 1970, they saw an opportunity and position themselves as the « avant guards » for that problem. In short they have decades in advance from everyone. Now someone could build a factory but they will not be able to ever compete against Taiwan.
China always said that Taiwan is their, Trumps wanting to bring back chips manufacturing to the US is laughable at best 1. Doing so will need a huge influx in capital 2. Running the new factories will be impossible/cost effective (read minimal cost) as the Taiwanese do (you know regulations and such) 3. Training employees will be a fucking pain. Now since China always had eyes on Taiwan, the American faltering presence will give them the perfect opportunity to attack or soft conquer it.
In conclusion if Trumps’s bid works and chips industries happen in America = the price of computer go up for poorer products for decades to come
Every single news organization seems to be fudging what “build in the US” means, and no one seems to dare ask Trump what he means by that. So all of these articles are ambiguous and confusing. We have to assume he means to bully companies into making their own chips in the USA, which shows that Trump has no grasp of the difficulties involved in doing that. All he will achieve is to disrupt the business of all electronics companies doing business in the USA and raise the price of their products.
Edit: US chip manufacturing seems to have increased over the last few years, with Intel making a lot of chips in the USA and TSMC making plenty of AMD chips in its Arizona fab too. So perhaps the goal of Trump’s move isn’t so crazy, but the implementation is so crude it will cause more problems than it solves, at least in the near future.
There’s a reason why next to every chips are made in Taiwan and Trumps (and news outlets) seems to forget
I genuinely don’t know, why?
They build their manufacturing industries since the 1970, they saw an opportunity and position themselves as the « avant guards » for that problem. In short they have decades in advance from everyone. Now someone could build a factory but they will not be able to ever compete against Taiwan.
China always said that Taiwan is their, Trumps wanting to bring back chips manufacturing to the US is laughable at best 1. Doing so will need a huge influx in capital 2. Running the new factories will be impossible/cost effective (read minimal cost) as the Taiwanese do (you know regulations and such) 3. Training employees will be a fucking pain. Now since China always had eyes on Taiwan, the American faltering presence will give them the perfect opportunity to attack or soft conquer it.
In conclusion if Trumps’s bid works and chips industries happen in America = the price of computer go up for poorer products for decades to come
Chips seem like something worth having domestic production for even if it isn’t the lowest cost.
I’m not a Trump fan but creating a domestic chip manufacturing capability seems like a good strategic boon.
In addition to existing supply, not a replacement for existing supply.
Which the states already have but nobodies will be able to churns chips like Taiwan but Trumps seems to think that the US can which is laughable.