Today, TSMC, the world's largest contract chip manufacturer, appears to be sailing through minefields.
The company recently announced a $100 billion investment in the country, a decision apparently to avoid up to 100% tariffs in the largest buying countries.
Analysts and experts have long speculated that large-scale investments are stimulated by tariffs. However, U.S. President Donald Trump himself confirmed the huge amount of these taxes.
Also on the AF: China hits 84% tax, after Trump doubles U.S. tariffs
“TSMC, I didn’t give them any money… All I did is say if you don’t build plants here, you’ll pay a lot of taxes,” Trump saysspeak at a public event on Tuesday.
He added: “25 years old, maybe 50, maybe 75, maybe 100%.
Considering that it regards some of the largest U.S. companies as its buyers, TSMC will pay TSMC a huge cost with a 100% tax. Although it may also be possible to transfer the cost burden of these tariffs to companies such as Apple and Nvidia.
Taiwan media Report in February Chip makers are ready to increase the cost of their advanced chip manufacturing processes by more than 15% in response to tariff risks threatened by U.S. President Donald Trump.
Still, TSMC's move won mixed reactions in Taiwan, with some noting that it would help chipmakers get rid of Trump's tariff threats, while others fear its consequences on the island.
One of the island’s biggest concerns is that TSMC’s expansion in the United States will cut its importance in Taiwan and make the island increasingly vulnerable to Chinese invasions.
Others also pointed to risks associated with succumbing to Trump. “Once you agree to the blackmail, there’s no end,” Chang-Tai Hsieh, an economist at the University of Chicago Business School, Tell CNN.
$100 billion in fines
TSMC has since announced Several investments in Taiwanassert that it remains committed to the island. Taiwanese officials also clarified chip makers Not allowed Made the most advanced bargaining chips in the United States.
But the chipmaker is now facing new trouble in the United States – a risk of $100 billion in fines.
According to a Reuters reportThe U.S. Department of Commerce has been investigating TSMC's work at Chinese chip designer Soph after the company's TSMC-made chips matched the TSMC-made chips found in Huawei's high-end Ascension 910B artificial intelligence processors.
But Huawei is the company that Washington accused of undermining sanctions and stealing trade secrets — on the U.S. trade list, the company restricted its acceptance of goods made by U.S. technology.
And, because TSMC's chip manufacturing equipment includes U.S. technology, the company's Taiwanese factory can prevent it from making chips for Huawei or producing certain premium chips for any customer in China without a U.S. license.
Effectively, TSMC's Sophgo work could put it responsible for more than $1 billion in fines, Reuters said.
In recent years, TSMC has made nearly 3 million chips, matching the designs ordered by Sophgo and possibly ultimately match Lennart Heim, an information scientist at the American think tank Rand.
Based on designs for AI applications, TSMC should not make bargaining chips for Chinese-based companies, especially given the risk of shifting them to restricted entities like Huawei, Heim said.
TSMC shares listed on TSMC have exceeded 7% since Reuters reported on Tuesday. TSMC shares fell nearly 4% on Wednesday, although the decline was less than the 5.8% loss of Taiwan’s weighted index.
Since Trump announced his “Reciprocal” tax From White House Lawn last week.
Taiwan's exports to the United States now face an additional 32% tariff. Tariffs do not include chips, but Trump said his team is levied on semiconductors.
Meanwhile, how the Trump administration will conduct TSMC when it sells its chips to Sophgo or when the issue will be resolved. Senior Officials Already said They plan to seek higher penalties for export violations.
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Raymondo said
US chipmaker fined $500,000 for chips sent to China – NYT
