Trump Unleashes War on Taiwan’s Tech Industry, with TSMC Being Prime Target for Havoc…

Lets kick ‘em while they’re down shall we? Donnie Politics is back on his trade war tour, and this time, he’s got Taiwan in his sights. During a Republican retreat in Miami earlier this week, the president pitched his latest scheme: tariffs on Taiwanese imports, specifically semiconductors. Translation: He’s looking to body bag TSMC, aka the chip maker responsible for over 90% of the world’s advanced chip manufacturing. Naturally, this move is ruffling feathers, since, you know, everything runs on TSMC chips these days. 

(Source: Giphy) 

In short, Trump wants to slap tariffs—up to 100% on some products—on chips, semiconductors, and pharmaceuticals made in Taiwan. Why? To “bring production back to our country,” of course. He even compared his strategy to William McKinley’s 1890s tariff policies—which, depending on who you are, could be good or bad—but regardless Trump is convinced this is the way forward. 

Especially since Trump’s made it clear he’s not impressed with the Biden administration’s CHIPS Act, which allocated $52 billion in subsidies to kickstart domestic semiconductor production. TSMC, for its part, has already cashed $1.5 billion of its promised $6.6 billion in CHIPS funding and is knee-deep in a $65 billion investment spree that includes three Arizona fabs. 

(Source: PC Mag) 

The first one’s already up and running, but most of TSMC’s operations—and their clients (Apple and Nvidia)---are still very much tied to Taiwan. Trump’s message? Build more plants here or prepare to get taxed into oblivion, baby. Now, if you’re thinking, “Won’t this just make iPhones and Nvidia GPUs even more expensive?”—you’re absolutely right. Building a chip plant isn’t like whipping up a backyard shed. These things take years. So in the short term, Trump’s tariffs would likely jack up prices on everything from AMD processors to Tesla batteries, while the industry scrambles to adjust.

But Trump’s banking on the long game: that these tariffs will force U.S. tech companies to finally cut the cord with Taiwan and move chip production stateside. And he’s not being subtle about it. “The only way you’ll get out of this,” he said, “is to build your plant—if you want to stop paying the taxes or the tariffs—you’ll have to build your plant right here in America.”

(Source: Giphy) 

Of course, this isn’t just about supply chains; it’s geopolitical, too. Taiwan’s dominance in chipmaking has always been a pressure point in U.S.-China relations. Add Trump’s tariffs to the mix, and you’re looking at a trade war powder keg. Former National Security Adviser John Bolton has already sounded the alarm, warning that Trump’s proposed tariffs could destabilize Taiwan’s position even further, especially given Trump’s historically lukewarm stance on defending the island.

The market implications of this? Absolute chaos. UBS analysts are warning that Trump’s policies could force U.S. tech firms to accelerate domestic chip production, which might be great news for companies like Intel and Micron, but a logistical nightmare for everyone else. Meanwhile, Mizuho Securities is questioning whether Trump’s tariffs would even work, noting that most TSMC-made chips aren’t shipped directly to the U.S. They’re sent to China or other Asian countries for assembly before landing on American shores. So good luck enforcing that policy without creating loopholes big enough to drive a semiconductor-filled cargo ship through.

(Source: Benzinga) 

So, where does this leave us? If Trump’s tariffs go through, expect short-term pain: higher prices, disrupted supply chains, and a lot of pissed off tech execs. In the long term, though, this could be the push the U.S. needs to finally scale up its domestic semiconductor production. Whether that’s worth the chaos it’ll take to get there? Only time will tell—but if yesterday was any indication, you know damn well it’ll be painful. 

In the meantime, clutch your pearls and place your bets accordingly, friends. As always, stay safe and stay frosty! Until next time…

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Stocks.News holds positions in Apple, Tesla, and Intel as mentioned in the article.