TSMC avoids 100% tariff on US semiconductor chips

According to the head of the Taiwan Development Council (China), because chip manufacturing corporation TSMC has a factory in the US, it is exempt from the 100% tariff that the US President declared on semiconductor chips.

Taiwan chip manufacturing giant TSMC will be exempt from the 100% tariff that US President Donald Trump announced on semiconductor chips.

TSMC is the world's largest contract chipmaker, with Nvidia and Apple among its customers.

According to Liu Chin-ching, head of the Taiwan Development Council, TSMC will be exempt from the tariffs because it has factories in the US. Liu said that some Taiwanese chipmakers will be subject to a 100% tariff, but their competitors will also face similar tariffs.

Taiwan currently holds the world's leading position in chip manufacturing, and Liu believes that the leader will still have an advantage if he starts from the same starting point as his competitors. Liu said that this is a preliminary assessment at present and will continue to observe and propose short- and medium-term support.

Mr Liu spoke hours after Mr Trump announced he would impose a 100% tariff on chips and semiconductors, although he did not give a specific date when the new tariffs would be applied.

Mr. Trump declared that companies that are manufacturing in the US, or have committed to manufacturing in the US, will not be subject to tariffs.

Taiwan currently supplies more than half of the world’s chips, and nearly all of its high-end chips are made there. There are hopes that plans to invest an additional $100 billion in the US will allow TSMC to be exempt from the new tariffs.

Taiwan also pledged to increase investment in the US, buy more energy from the country and increase defense spending to more than 3% of GDP.

Mr. Trump has imposed a temporary 20% tariff on Taiwan, excluding semiconductors, while negotiators from both sides are trying to reach an agreement./.

(Vietnam+)

Source: https://www.vietnamplus.vn/tap-doan-tsmc-tranh-duoc-thue-quan-100-doi-voi-chip-ban-dan-cua-my-post1054283.vnp