In the end, only the customer pays extras.
this post was submitted on 28 Jan 2025
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Trumpets cannot comprehend this
They will first go "I don't buy those damn consoles and gamer PCs every few years", then find out once their new iPhones will be much more expensive...
Everything will be more expensive, if it uses a modern CPU. Phones, tablets, computers of any type from any company (both Intel and AMD are fabbing consumer CPUs on TSMC, as is Apple and Qualcomm), TVs, set top boxes, everything.
Right now TSMC is basically the only fab anything consumer-facing is made on, which is not a great thing in general, but vice president trump just decided that anything electronic needs a hefty price hike.
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He emphasized that the proposed tariffs would leave companies with no choice but to invest in domestic production facilities to avoid high taxes.
No choice except the obvious: Pass the cost of the Tax into the customer because there’s no way they’re going to spend billions to stand up a US fab plant anytime soon.
More so when these plants take 10 years to build. They will pass along the cost and just wait him out.
No choice except the obvious: Pass the cost of the Tax into the customer because there’s no way they’re going to spend billions to stand up a US fab plant anytime soon.
TSMC is standing up fabs in the US, mostly because we're bribing them to do so.
The problem is that it takes literal years to build high tech manufacturing and isn't something you can yank out of your ass to satisfy some idiot politician.
By Taiwanese law, TSMC isn't allowed to move cutting edge processes to its US plant. The overseas operations have to be at least one gen behind.
From a strategic point of view, it makes sense for the Taiwan government to do this. They don't want the US to suck them dry then cut a deal with the mainland.
I mean, it's economic blackmail: we won't build the good shit anywhere else, so if you don't protect us, you get nothing.
Effective, but only if you're dealing with someone who is rational, and, well, have you seen the brain-worm oligarchs in charge of the US lately?
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Oh man, Trump...I had this thing I wanted to give you...where did I put it...oh yeah...🖕
Awesome! Send them to Canada, we can build data centres and sell the cloud services back to Americans powered by the electricity that we expect to be tarriffed, and cooled by the water we won't sell.
Or Mexico! We're already on it. Sheinbaum is working to get a chip manufacturing plant up in Guadalajara. Exciting stuff, honestly.
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Can the fat fuck die from a coronary already?
Look at Henry Kissinger. If left to nature, Trump will live to be 120.
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Isn't the 2A to bring down tyrant governments?
indeed, so please stop beating the 1a to death and use your 2a to do something
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What a goddamn dumb fuck
So where is the US going to get its chips from then tax TMSC makes over 90% of chips?
TSMC was supposed to open a plant in the US, but apparently that takes a bit of time to get running.
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China I get, but Taiwan ? It's literally a US-proxy state
I'm sure that orange fuck will try to sell it to "beautiful" president Xi, or to clean it out to stop the conflict, or something like that, that bubbles up in his senile demented brain.
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Ah yes. Our sworn enemy: Taiwan.
It would be comical if it wasn't so sad.
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And in two weeks there will be a special executive order to free his Tech Bro oligarch buddies from these tarrifs so Meta and Elmo are not forced to pay a dollar extra.
If TSMC doesn't want to set up shop in the USA, are the USA going to be able to produce chips on par with what TSMC can fab?
they are building a plant in Arizona, but i doubt it'll ever be as good as Taiwan can do, not just because Taiwan has the skills but if Taiwan doesn't have this then what's the point of protecting it? It's sort of a way to say, if you want to to continue to access the best chips in the world you should protect us from China
Taiwan are very clear about this; they (correctly) consider their monopoly on high end chip manufacturing to be an urgent matter of national defence and it is of the highest priority to them to keep it solely within Taiwan. They will never allow their best processes to be exported.
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The US could probably do it... With hundreds of billions of government incentives to rapidly stand up the entire supply chain... Which would still take at least a decade. The machines that TSMC uses are made by ASML and themselves have a global supply chain of over 500 separate companies and are backordered for several years due to their inherent value.
In short, no.
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Intel has been trying to get itself into that position for years, with huge amounts of public money being pumped in, and it is struggling so badly the company lost patience and fired the CEO who had the best chance of getting this done. And, as others have said, it doesn't look like TSMC is about to let its US fabs do the most advanced stuff even if they could.
So this move will just make the best technology less accessible to the USA and tech products more expensive for Americans, for the foreseeable future.
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From what I understand one of the things that is protecting Taiwan from China is their fabs. They will fight for their lives to make sure they are protected by this.
As someone with family over in Taiwan, I really want them to be okay. Things are getting depressing globally.
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It's going to impact American consumers a hell of a lot more.
Came here to say that. Americans pay the tarrifs. He's raising prices for American consumers.
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But I thought the Tim Apple donation to the trump inauguration was supposed to curry enough favor to avoid this.
ThisIsMySurpisedFace.jpg.
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Lol, I'd love to watch everyone in the US paying triple for literally anything that has electronics in it.
If Trump then wants to build chips in the US, good luck. ASML is the only one with the machines, first of all, and by the time he can buy those, something tells me they might have some extra tarifs added to them, and then paying US salaries for electronics would skyrocket prices to people having to pay four-five times the amount of what they're paying now.
Not saying that the near slavery conditions in Asia are fine, that should have changed decades ago, but the way trump is doing this is hilarious, people will want his head on a plattee
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I don't get the goal here. It's not just that existing fabs are in Taiwan, I thought it was the knowledge was as well.
I was under the impression that we'd built a couple of fabs here and they're not productive due to a knowledge deficit. Maybe I'm uninformed.
It seems, to my uninformed self, that if we impose tariffs we'd be strengthening Taiwan/China relations. Wouldn't China still serve as a middle man?
I don't see us manufacturing when the dollar is so high relative to foreign currency; add in the lack of knowledge and facilities and I'm not sure what you get.
I truly believe these are his way of soliciting bribes from foreign and domestic businesses.
They're going to have to pay him to get around them.
I've been looking at doing a new pc build but wanted to wait for the new GPUs coming out. Looks like I should just my new build before prices are stupid.
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Trump is basically a sad fat kid in a classroom that just cries and screams when shit doesn't go his way and then ruins everything for everyone else.
To avoid this, the administration would need to introduce exemptions, just like it did with China-made graphics cards and motherboards years ago.
If that is the approach, it would ensure tech monopoly for 5 years for all of the oligarchy that kisses his diaper.
More major issues with this is that while high end Chip production may be high value manufacturing, motherboards, electronics, and assembly is not, and there would likely be an export of chips to somewhere else to import finished products.
US/Trump explicit hatred for world is likely to get retributive tariffs, that makes chip plants unproductive investments, though Trump is hoping to have high foreign ownership/investment in those plants.
In 2022, the export share of Taiwan integrated circuits to US was just 2.46%, although in early 2024, total (all goods) Taiwan exports had US take lead over China for the first time.
That both US and China are decoupling from Taiwan is going to reduce any geopolitical subservience impulse that provokes a war with China. Taiwan may get closer to China instead of begging for more US "friendship".
Surely this will bring egg prices down.
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