Trump’s Tariffs Are Threatening the US Semiconductor Revival
1 min read
Summary
US tech firms may now be facing more problems as a result of the exemptions to Donald Trump’s tariffs on semiconductors, with a list of products that are unaffected published by the White House, that includes Chips in devices such as GPUs and servers for training AI models and manufacturing equipment to make Chips in the US not being spared either.
This will make it very difficult for US tech companies to continue to source Chips without facing higher import costs, which will have a knock-on impact on other tech companies that use Chips in devices as well as equipment to make Chips.
This may stifle the development of AI hardware, cloud computing, and quantum computing in the US and increase costs for consumers which may lead to higher prices for consumers.
The coronavirus pandemic and subsequent semiconductor shortages have highlighted how crucial Chips are to the global economy, with supply chains now under pressure as well.
This could lead to more manufacturing being brought back to the US, which was one of Trump’s key policies.
