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Donald Trump’s announcement of a 100 percent tariffs on imported semiconductors has triggered a major shift across the Asian chip markets, with a distinct divide between firms punished by the measure and those benefiting from exemptions linked to U.S. investment.
The announcement underlines the intensifying global competition for high-end chips, crucial components underpinning artificial intelligence and advanced computing.
At a White House briefing, Trump declared that the tariffs would apply to all chip imports apart from those coming from companies that manufacture or commit to manufacturing semiconductors within the United States. Prominent players such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics have emerged as key beneficiaries, buoyed by their strategic investments in U.S. facilities.
TSMC, the world’s largest contract chipmaker and supplier to tech giants like Apple and Nvidia, surged nearly five percent on Taiwanese markets following confirmation from Taiwan’s National Development Council that it would be exempt due to its substantial U.S.-based factories. Similarly, Samsung Electronics, which plans billions of dollars in U.S. investment, saw its shares rise by around two percent in Seoul.
Non-exempt Asian tech companies, on the other hand, are facing a tough road ahead. In Japan, manufacturers heavily involved in chip production and related equipment saw share prices tumble: Tokyo Electron dropped 3.2 percent, Renesas sank 3.4 percent, and other chip component producers like Disco Corporation and Sumco also lost value. South Korean chipmaker SK Hynix too initially experienced a significant share decline of 3.1 percent before South Korea’s trade envoy clarified that SK Hynix and Samsung would be exempt due to their U.S. manufacturing plans, easing some market apprehension.
Industry experts view the tariff policy as a clear attempt to reorient global semiconductor supply chains toward America and reduce dependence on foreign imports. Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis, speaking to Agence France-Presse, noted that the move would leave many of the highest-end semiconductor producers unaffected, but would potentially cripple the producers of less advanced chips in Malaysia and China.
“This kills producers of low-end chips,” she said.
The tariffs mark yet another departure from Biden-era economic policy, which focussed on government subsidies to incentivise US investment. The CHIPS Act pledged $52.7 billion for semiconductor manufacturing, R&D, and workforce development in the US, sparking multi-billion dollar investment announcements from the likes of TSMC, Samsung, Intel, and GlobalFoundries.
Trump, however, has called CHIPS Act a “horrible, horrible thing”, preferring to pursue an aggresive economic policy based on tariffs over subsidies.
This article was partially generated by AI and edited by a journalist
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Donald Trump’s announcement of a 100 percent tariffs on imported semiconductors has triggered a major
