Trump's Threat of Tariffs on Chips

US President Donald Trump has threatened to impose a 100% tariff on chip and semiconductor imports, raising questions about the potential impacts and desired goals of this policy. This move comes as part of broader efforts to encourage companies to boost their investments in the manufacturing sector within the United States. Trump has confirmed that companies relocating their manufacturing operations to the United States will be eligible for a complete exemption from these tariffs.

The Importance of Semiconductors: Semiconductors, which constitute a massive global industry valued at over $600 billion, are the cornerstone of the modern digital economy; they are integrated into everything from smartphones and computers to cars and medical devices.

Questions Regarding Policy Implementation Mechanisms

Ambiguity Regarding Details: Experts indicate that the final details of the policy are yet to be clarified, making it difficult to determine the full impact on the sector. One of the biggest questions remaining is the volume of manufacturing a company must commit to in the United States to qualify for the tariff exemption.

Major Companies' Response and Investment Trends

Major Corporate Commitments: Since 2020, major semiconductor companies have responded to these trends, with TSMC and Samsung Electronics committing hundreds of billions of dollars to build advanced factories in the United States.

TSMC's Investment in Arizona: TSMC has announced an additional investment of $100 billion in Arizona, bringing its total planned investments to $165 billion, a move that was widely welcomed and boosted its stock.

Impact of Investments on Stocks: Shares of South Korean Samsung and SK Hynix also saw similar increases following reports of their potential exemption from tariffs due to their significant investments in the country.

Scope of Tariff Application and Economic Repercussions

Application to Finished Goods: Aside from exemptions, many aspects of the potential tariffs remain unclear. Most semiconductors entering the United States are integrated into final consumer goods such as smartphones, computers, and cars. In 2024, the United States directly imported $46.3 billion worth of semiconductors, representing only about 1% of the country's total imports, raising questions about the scope of the proposed tariff's application.

Apple's Massive Investment: In a related context, Tim Cook, CEO of Apple, announced an additional investment of $100 billion in the United States, bringing the company's total investment commitments in the country to $600 billion over the next four years.

Conclusion: Objectives and Impact on Investor Confidence

Objectives of Tariff Policies: These tariff policies aim to push major technology companies to increase their investments in American industrial infrastructure, and while they have created a state of anticipation and confusion among companies and trade partners, they have not negatively affected investor confidence so far, who see in them an opportunity to boost local production in the long term.