Biden Administration Considers Tariffs on Chip Imports
The Biden administration is reportedly considering imposing tariffs on imported semiconductors, among other products, as part of efforts to strengthen domestic supply chains and reduce reliance on foreign manufacturers.
Taiwan's Concerns
Taiwan, home to chipmaking giant TSMC, has expressed concerns about the potential impact of such tariffs on its economy. Premier Cho Jung-tai stated that his government will "urgently look at whether we need to make more cooperative plans and future assistance programs for the industrial sector."
TSMC's Position
TSMC, the world's largest contract chipmaker, has not yet commented on the potential tariffs. However, it has previously announced plans to invest heavily in a manufacturing facility in Arizona.
Potential Economic Impacts
Analysts predict that tariffs on chips could have a significant impact on global supply chains and pricing. Taiwan could experience a slowdown in exports, especially if tariffs reduce demand for its semiconductors.
Ongoing Trade Tensions
The potential tariffs come amid ongoing trade tensions between the United States and Taiwan. Last year, Taiwan's trade surplus with the United States surged 83%, raising concerns about currency manipulation and unfair trade practices.