Trump's Semiconductor Tariffs Loom: A Challenge for Taiwan's Chip Giants

Experts Weigh in on the Potential Impact of Upcoming US Semiconductor Tariffs, Particularly on TSMC and Taiwan's Chip Industry

The United States is poised to unveil details of its semiconductor tariffs this Wednesday, the 7th of May. According to Liu Peichen, Director of the Taiwan Institute of Economic Research's Industry Database and a fellow of APIAA, the tariffs are expected to be significant. Her assessment is based on the US government's desire to facilitate the large-scale relocation of Taiwan's semiconductor supply chain to the United States, especially the highly competitive advanced process capabilities of companies like TSMC (2330).

The US investigation into the semiconductor sector is centered on "national security" concerns and encompasses 14 key areas. These include foreign subsidies, risks associated with supply chain dependencies, and bottlenecks in domestic production capacity. The aim is to conclude the investigation by gathering public feedback before May 7th. It is widely believed that the semiconductor tariffs will be imposed shortly after this date, impacting major players like TSMC and ASE (3711). This development sends a clear warning signal to the global semiconductor industry.