Robert Triggs / Android Authority
TL;DR
- President Donald Trump has announced plans to tariff foreign-made chips, including chips made in Taiwan.
- Taiwanese-made chips are used in everything from iPhones and Android phones to gaming consoles and PCs.
- This could lead to US consumers paying more for these electronics.
The most cutting-edge chips in the world are made in Taiwan by TSMC, with these chips powering smartphones, PCs, and more. However, a new US plan could result in price hikes across the board for most electronics.
President Donald Trump announced plans to tariff foreign-made chips, including advanced chips made in Taiwan. Trump made the comments during a House GOP Issues Conference.
“In particular, in the very near future we’re going to be placing tariffs on foreign production of computer chips, semiconductors, and pharmaceuticals to return production of these essential goods to the United States of America,” Trump said, according to C-Span (h/t: PC Mag).
“They left us, and they went to Taiwan, which is about 98% of the chip business, by the way,” Trump added. A 2023 International Trade Commission working paper noted that 18% of global chip manufacturing capacity is located in Taiwan, but that 92% of the most advanced chip manufacturing capacity is on the island.
Brace yourselves for higher prices
Hadlee Simons / Android Authority
Tariffs typically lead to price increases on the affected goods as companies hike prices to compensate. So tariffs on foreign-made chips will likely lead to more expensive chips, which in turn will likely mean more expensive electronics that use these semiconductors.
If confirmed, these tariffs would affect chip companies like AMD, Apple, NVIDIA, MediaTek, Qualcomm, and more, as they all rely on TSMC. It’s unclear if Korea would be subjected to these tariffs as well, as it could mean that Samsung Exynos and Google Tensor chips, in particular, could see a price hike.
Chips from these companies are used in Android phones, iPhones, iPads, PCs, smartwatches, the PlayStation 5 line, Xbox Series consoles, and more. Nintendo is also expected to use foreign-made chips in its Switch 2 console. So it’s very possible that consumers will ultimately pay in the event of a chip tariff. Don’t expect a price increase overnight though, as these tariffs might take time to come to fruition if they materialize at all.
