It would not be easy for the US to rapidly implement a tariff on imported semiconductors because the cost of the policy to the country would be too high, according to Aaron Friedberg, a politics and international affairs professor at Princeton University.
In response to Taiwanese media’s queries, Friedberg said while US President Donald Trump wants to use tariffs to persuade companies to manufacture in the US, he did not expect the threats to be carried out quickly.
“Given that it will likely take many years to increase US semiconductor manufacturing capacity, the imposition of high tariffs would drive up the costs and reduce the competitiveness of other American industries,” Friedberg said on Wednesday. “For that reason, I would not expect to see these threats carried out all at once or quickly.”
Photo: Richard Chung, Reuters
Trump’s chip tariff threats aimed to push domestic and foreign manufacturers to boost US investments, he said.
“Whether by the threat of tariffs or perhaps more positive inducements and incentives, the US will definitely be trying to encourage Taiwanese and other foreign companies to invest more in the US,” he said.
On Tuesday last week, Trump said he would like to impose a 25 percent tariff on semiconductors, cars and pharmaceuticals, with an official announcement expected as soon as April.
“It’ll be 25 percent and higher, and it’ll go very substantially higher over the course of a year,” Trump said at his Mar-a-Lago residence.
Trump has repeatedly alleged Taiwan “stole our chip business.”
Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, was a self-made success, National Security Council Secretary-General Joseph Wu (吳釗燮) said on Friday.
TSMC is investing US$65 billion in Arizona to build three advanced fabs. In the face of Trump’s tariff threats, it is widely thought that TSMC would establish more sophisticated integrated circuit (IC) assembly plants in the US or even acquire a stake in Intel Corp’s fab operations through technology transfer.
TechSpot, a US-based tech Web site, reported on Thursday that the US and many Western countries are not as efficient as Taiwan when it comes to building semiconductor fabs, saying that “building semiconductor plants in the US takes twice as long, costs twice as much as in Taiwan.”
The West has to streamline fab construction processes to catch up with the semiconductor ecosystems in Taiwan and other Asian manufacturing hubs, it added.
TechSpot highlighted the challenges TSMC has faced in the US, saying that “TSMC struggled to find skilled workers locally, a problem rarely encountered in Taiwan.”
“Cultural differences between TSMC’s Taiwanese management and American employees created unforeseen obstacles,” it said, but that “perhaps most critically, navigating local regulations proved difficult for the global chip manufacturer.”
On Feb. 13, John Bolton, former national security adviser to Trump, said in a media interview that imposing a tariff on chips from Taiwan would not change the reality that the US is dependent on Taiwan-manufactured chips.
The real issue is that the US cannot develop cutting-edge IC capabilities overnight, he said.
FUKUOKA SITUATION: Japanese media reported that the pathogen is expected to be identified by the summer, while the CDC downplayed the idea that it was hMPV A “mysterious cold-like illness” reported in Japan’s Fukuoka Prefecture does not seem to be a new disease, but Japanese authorities have been asked about the situation, the Centers for Disease Control (CDC) said yesterday. The Fukuoka Prefectural Medical Association on Wednesday told a news conference that a “mystery cold” that has become a hot topic on social media is “highly likely to be caused by some kind of viral infection,” Japan’s KBC News reported. “Many people are experiencing symptoms starting with a sore throat, followed by a runny nose, phlegm and a severe cough,” KBC News reported, citing association officials. Health authorities are
Nvidia Corp CEO Jensen Huang (黃仁勳) arrived in Taiwan yesterday ahead of upcoming AI and technology events, saying he plans to meet with clients and Taiwan Semiconductor Manufacturing Co Chairman C.C. Wei (魏哲家) during his visit. After landing at Taipei Songshan Airport, Huang posed for photos with fans and handed out Yakult drinks to reporters and supporters waiting at the scene, saying he has “a lot to do” during the trip. Asked about reports that Nvidia’s planned headquarters site in Taipei’s Beitou Shilin Technology Park could break ground on May 27, Huang said that if the company holds an event, he would
The Ministry of Finance this afternoon announced the winning numbers for the March-April uniform invoice lottery. The winning number for the NT$10 million (US$318,060) special prize is 19531471, and the winning number for the NT$2 million grand prize is 85941329. Three numbers were drawn for the NT$200,000 first prize: 07225810, 20231230 and 83518781. Those with receipts matching the last seven digits of any of the first-prize numbers will win the NT$40,000 second prize, while those matching the last six digits will win the NT$10,000 third prize. Those whose receipts match the last five digits of the first-prize numbers can claim the NT$4,000 fourth prize,
SIX SUBSIDIES: The monthly allowance for older farmers is to increase to NT$10,000, and NT$5,000 is to be given to homemakers under the national pension system, Lai said The government is to implement major welfare policies for disadvantaged groups, including raising the monthly allowance for older farmers to NT$10,000 and providing homemakers with NT$5,000 per month, President William Lai (賴清德) said yesterday. Lai made the remarks during a visit to Wangling Temple in Chiayi County, saying that the planned increases were being introduced amid economic growth and an increase in tax revenue. Touting a policy, in which the government plans to provide a monthly allowance of NT$5,000 for every child under the age of 18 in a bid to address Taiwan’s low birthrate, Lai said that if received for the
RSS