Trump’s chip tariff could reshape Samsung, TSMC’s US plans

Republican Presidential candidate and former US President Donald Trump mocked CHIPS Act introduced by Biden Govt. In a podcast interview, Trump hinted at potential chip tariff proposals that could reshape the plans of Samsung and TSMC in the US.

CNBC reported that Donald Trump criticized the Biden administration’s CHIPS and Science Act. He further proposed imposing high tariffs on semiconductors to compel these companies to establish factories in the US.

“That chip deal is so bad,” he said. “We put up billions of dollars for rich companies to come in and borrow the money and build chip companies here. They’re not going to give us the good companies anyway.”

While Intel has pledged approximately $100 billion, Samsung has committed $44 billion, expecting $6.4 billion in subsidies; TSMC has planned $65 billion with $6.6 billion in subsidies, and SK Hynix has pledged $3.87 billion, with a $450 million subsidy.

Combined with a potential reduction or cancellation of CHIPS Act subsidies promised under the Biden administration, a potential chip tariff of Trump could lead chip makers such as TSMC, Samsung, and SK Hynix to rethink their plans.

Is TSMC on the radar?

Analysts believe that Trump’s comments were more directed at Taiwan than South Korea.

In the interview, he remarked, “You know, Taiwan, they stole our chip business … and they want protection.” This implies a focus on TSMC, which produces advanced semiconductors, rather than on South Korea’s Samsung and SK Hynix.