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.
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
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.