US President Donald Trump said that if they have already invested in US facilities, these rates will not be affected.
US President Donald Trump says he will raise a 5 percent rate on a foreign -made semiconductor, although the company investing companies will be exempted.
Trump told reporters at the Oval office on Wednesday evening, “We are raising approximately 5 percent rates on chips and semiconductors, but if you are ready in the United States, there is no charge.
The news came after a different announcement that Apple would invest $ 600 billion in the United States, but the American observer was not unexpected.
Trump told the CNBC on Tuesday, without further details, “Next week or more, the semiconductor planned to unveil a new rate.
Details in the oval office on how and when the rates would be applicable were also low, but the semiconductor powerhouse in Asia was quick to respond to the potential effect.
Taiwan, the world’s largest Chipmaker in the world, said Taiwan, the current investment in the United States, would be exempted from the company.
Liu Chin-Ching, the head of the National Development Council, told Taiwan’s legislature, “Taiwan’s main exporter is TSMC, which has US factories, has been exempted from TSMC.
In March, TSMC, counted as customers to Apple Pal and Nvidia, said the US investment to expand chip making and research centers in Arizona would increase to $ 165 billion.
South Korea was also quick to extinguish any concern about the top chipmakers of Samsung and SK Hinics, who also investing in facilities in Texas and Indiana.
Trade messenger Yeo Han-Koo said South Korean companies would be exempted from prices and after signing a trade agreement with Washington earlier this year, Sol has already faced “favorable” rates.
TSMC, Samsung, and SK Hannix are some foreign tech companies who have invested in the United States since 2022, when the then-president Joe Biden signed the bilateral chips law and gave billions of dollars and tax credits to recur invest investment and production.
The Philippines are less fortunate, said Dan Lachika, a semiconductor at the Philippines Foundation and President of Electronics Industries.
He said that the rates will be “destructive” because the continent of the Philippines is 70 percent.
The latest round of Blanket rates on Trump’s US trade partners will be implemented on Thursday, but the White House has targeted specific industries such as steel, aluminum, automobile and pharmacies.
