r/wallstreetbets • u/MikeMikeGaming AI bubble survivor • Jan 28 '25

News Trump To Tariff Chips Made In Taiwan, Targeting TSMC

https://au.pcmag.com/computers-electronics/109466/trump-to-tariff-chips-made-in-taiwan-targeting-tsmc

Why don't we kick Nvidia while it's down am I rite?

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465

u/the_next_core Jan 28 '25

TSMC could literally care less, it’s the Mag 7 that needs their chips and will be paying this tariff. What a hilarious self sabotage on US markets.

15

u/karnoculars Jan 28 '25

This is like a diabetic tariffing an insulin factory

64

u/black_cadillac92 Jan 28 '25

I thought they built a factory in AZ?

200

u/the_next_core Jan 28 '25

To maintain relations by producing older gen chips here… The truly valuable stuff is not

23

u/black_cadillac92 Jan 28 '25

Okay, thanks for clarifying.

32

u/[deleted] Jan 28 '25

Old gen chip manufacturing capability is also valuable

43

u/Chtholly_Lee Jan 28 '25

While I don't disagree with your comment, a lot of places can manufacture old gen chips though.

12

u/RedHatWombat Jan 28 '25

Their old gen fabs are the newest one for Intel.

-7

u/mrosen97 Jan 28 '25

Underrated comment

6

u/SuperNinja1169 Jan 28 '25

Wrong. Phase 2 is already under construction and will produce their current and next-gen chips.

13

u/Mortentia Jan 28 '25

Key phrase: “under construction”

0

u/SuperNinja1169 Jan 28 '25

Yes... as in "not in planning phase but actually building". Very key.

3

u/daniel_zan_ryuuga Jan 28 '25

how long when stable mass production start? 3 years or 4?

1

u/Minimum_Accident8168 Jan 28 '25

Is it Intel or TSMC thats building theese current and next-gen chips?

1

u/wily_virus Jan 31 '25

Intel cannot make current gen chips. We'll see if their 18A gamble pays off. That's their last hope to catch up

TSMC Arizona is going to make advanced chips. However the bleeding edge stuff they'll keep in Taiwan, one generation down will be made in AZ. Even older stuff they plan to make in Japan and Europe. One excuse they said for AZ is red tape and paperwork slow down getting things done. Even simple ingredients like sulfuric acid costs 5x as much in USA.

And China poop out generic commodity chips at $1 a pop.

3

u/rocky3rocky Jan 28 '25

2028 Should I just take a coma medication while the U.S. is blocked out from high-end technology?

1

u/commandedbydemons Jan 28 '25

Apples latest chips for the iPhone are also produced in AZ, so this isn’t technically accurate AFAIK

13

u/the__storm Jan 28 '25

TSMC's AZ fab is in early production of the A16 from 2022. Apple's latest chips are made in Taiwan.

7

u/Facebook_Lawyer_Gym Jan 28 '25 edited Feb 14 '25

pen live seed vegetable lip market quaint nine literate squeal

1

u/JC_Vlogs Jan 28 '25

The AZ fab is producing 4nm chips for Apple, so not exactly "older Gen"

9

u/jambrown13977931 Jan 28 '25

Taiwan would instruct TSMC to close the plant if the tariffs go through.

3

u/gentlemanidiot Jan 28 '25

Why would they do that when they can simply raise prices for Americans?

2

u/jambrown13977931 Jan 28 '25

Taiwan doesn’t like other countries messing with TSMC. If they ban the sale of chips to the US, within a month the US would be in economic collapse. It’s much easier to just force his hand and make him give up the tariffs than do along with it.

5

u/KGator96 Jan 28 '25

Taiwan also doesn't like other countries invading it, namely China. And since the US is the only real reason China doesn't do something utterly stupid, it's probably not a good idea to piss off the US while the Orange Man is in charge. He might literally post on twitter, "Hey Pooh Bear, Taiwan's all yours now, we're out. Have fun!"

3

u/jambrown13977931 Jan 28 '25

What value is the TSMC to the US if we’re imposing tariffs on them. The reason Taiwan would respond so drastically is to get the US to reverse course before China has a chance to mobilize against them.

3

u/LensCapPhotographer Jan 28 '25

They stumbled on a bunch of issues which would make it take twice as long to finish that factory

1

u/longiner Jan 28 '25

If those fabs were dependent on CHIPS money, they still need to deliver the fab within the predetermined time to receive the CHIPs subsidies. They don't come without strings.

2

u/BrokenPawmises Jan 29 '25

Weve already seen the new administration wanting to cancel that, as well id expect them trying to claw that back in some way as well with the way theyre currently posturing, so do they even consider CHIPs as a real subsidy at this point?

4

u/[deleted] Jan 28 '25

They have been struggling to get the production up and running. It is hard to train local laborers and had to basically set up a little Taiwan in the middle of the desert

3

u/lolas_coffee Jan 28 '25

They have. It has a lot of problems, but it will produce a fair amount.

It is scheduled for older stuff, not new. Still a good project. But who tf knows with Trump in charge. He (and his crew) is an idiot.

3

u/messengers1 Jan 28 '25

4nm in mass production and 3nm is coming up and 2nm in 2028(est).

2

u/Reddog115 Jan 28 '25

Yes, coming up on line now.

2

u/11B_Rsnow Jan 28 '25

TSMC has an operating fab in Washington State as well but it makes older stuff.

2

u/dwinps Jan 28 '25

They did and it upsets Trump that Biden actually got a semi factory built in the US while Trump never did.

4

u/DetectiveFit223 Jan 28 '25

This plant couldn't provide the capacity to make enough chips.

0

u/Thesonomakid Jan 28 '25

Drive by the new plant a few times a month. It’s a failure, according to all accounts, due to shitty workers. Being in management, I can’t say they are wrong.

6

u/Preachey Jan 28 '25

> could care less

5

u/koticgood Jan 28 '25

TSMC could literally care less

lol

3

u/dwinps Jan 28 '25

The MAG7 will just move their AI business outside the US, build their big GPU clusters outside the US and avoid paying 50-100% more for their chips.

2

u/im-liken-it Jan 28 '25

When prices go up, people buy less. TSMC will be affected.

1

u/swim_kick Jan 28 '25

> it’s the Mag 7 that needs their chips and will be paying this tariff.

I'm sure they'll just completely eat the cost of the tariff.

-9

u/AphiTrickNet Jan 28 '25

So they’ll invest in production in the US or basically pay a tax. It’s a wealth transfer from private companies to the government LMAO

17

u/WeedstocksAlt Jan 28 '25

It’s the US consumer that will end up paying that tax… not the manufacturers

-10

u/AphiTrickNet Jan 28 '25

What are we paying META? They can’t pass that on to us

7

u/triedpooponlysartred Jan 28 '25

You think the companies who pay to be advertising on Meta don't budget that extra cost into determining prices for consumers?  There is a reason groups like Twitter and Meta are in favor of banning other social media like tiktok and rednote or whatever it was called. Less competition for advertisers to go to means they can charge more for ads on their own platforms.