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Under the new system, if a company pledged to build one million chips in the U.S., it would essentially be credited with that amount over time so the company and its customers could import until its plant was completed without paying tariffs, the people said. There could be relief at the start of the process to give companies time to adjust and increase U.S. capacity, the people said.
Will this apply to chip manufacture or the product importer? Say Apple, Nvdia or Amazon. For every phone, Server rack or Server does this mean for every chip coming from Taiwan needs a credit of a future chip from the US.
Take Apple, I assume they bring in 1/2 billion chips a year at a minimum counting their Phone, Computers, and wearables... OMG that is means gigafab!! TSMC will need to find three thousand more acres in the US for matching 1:1.
I hope this policy (if implemented) works. The cost disadvantage is only about 10%. However, the crippling lack of scale--lack of oxygen--that is the problem Intel and Samsung face.
Nothing equals the scale TSMC has built in Taiwan, except Samsung scale in Korea. I think Samsung should focus on Korea to regain health.
Intel is the weak man of the world. Spread too thin in the US, Intel continues to invest in Ireland and Israel, rather than consolidating. If Intel consolidated most investment in the US, it would help build scale like TSMC has in Taiwan.
Intel is the weak man of the world. Spread too thin in the US, Intel continues to invest in Ireland and Israel, rather than consolidating. If Intel consolidated most investment in the US, it would help build scale like TSMC has in Taiwan.
TSMC can walk away, and US will be stuck with Samsung's old plant. Which is a limited scale enterprise, built exactly for the purpose of a nice certificate of origin for niche chips. And building a new one will take years, without anyone to actually run it.
ROK gov can also offer nice relocation deals to Americans trained in TW to come over on condition of keeping their American salaries (they will be RICH in Taiwan)
TSMC can walk away, and US will be stuck with Samsung's old plant. Which is a limited scale enterprise, built exactly for the purpose of a nice certificate of origin for niche chips. And building a new one will take years, without anyone to actually run it.
I doubt they can easily walk away from US cause TSMC relies on US customer which are at the mercy of US more or less an eternal cycle to say the least.
I doubt they can easily walk away from US cause TSMC relies on US customer which are at the mercy of US more or less an eternal cycle to say the least.
Well considering Nvidia/Apple/Google's/AWS/AMD/QCOM reliance yup but TSMC will suffer setback as well. No one will win neither Taiwan/TSMC neither majority of US Companies
Well considering Nvidia/Apple/Google's/AWS/AMD/QCOM reliance yup but TSMC will suffer setback as well. No one will win neither Taiwan/TSMC neither majority of US Companies
They can try to scale Intel with a government decree. And they tried already, it did not work.
They can try the same with Samsung, but again, Samsung US operation is small, it will take years, and probably more, if Taiwan will not supply chemicals, and they will need to do the semi chem industry from scratch.
Even if, everyone in TW, including third tier foundries, will bite the bait. 1:1 match is just physically impossible under a decade+
It would be easy for US just to annex Taiwan. There is a "theory" that US actually owns Taiwan. Japan surrendered Taiwan to US after WW2 and US never officially give Taiwan back to China. I am sure Trump can find some legal loophole to justify it.
