Trump makes chips from Taiwan more expensive, but Taiwan doesn't fret

Taiwan doesn’t fret against President Trump’s tariffs plan that could cost companies more when buying Taiwan-made computer chips a lot more expensive.

Taiwan’s government recently responded to the tariff threat, saying that it was a “win-win” solution as Trump seeks to boost American domestic production of chips and other goods instead.

During a speech, Trump has previously called for tariffs on foreign-produced computer chips, semiconductors, and pharmaceuticals, specifically targeting Taiwan. It is home to major semiconductor manufacturers like Taiwan Semiconductor Manufacturing Co. (TSMC).

He then criticized the Biden administration’s approach of offering subsidies to companies like Intel to build factories in the US, saying that instead, the incentive should be the threat of significant tariffs. Trump believes this would encourage companies to invest their own money in U.S. factories rather than rely on government aid.

The proposed tariffs could lead to price hikes on various consumer electronics, according to industry groups like the Consumer Technology Association. Or, in other words, it can make phones, laptops, tablets, computers, and those electronic products a lot more expensive than it already is.

But, the Semiconductor Industry Association supports the Biden administration’s Chips & Science Act, claiming it has spurred substantial investment and job creation in US semiconductor manufacturing.

TMSC, the world’s largest contract chipmaker, is a big player in the global tech supply chain, supporting companies like Apple and Nvidia.

The news arrived amid high tension in the race of tech, as American and Chinese companies are competing to be on the top of the food chain.

Recently, a Chinese AI company DeepSeek arrived as a new AI player in town, and its overnight sensation challenged dominance from OpenAI, Microsoft, and Nvidia – so much so that the US market lost over a trillion dollars since the launch.