Washington: Aaron Friedberg, a politics and international affairs professor at Princeton University, expressed skepticism about the United States’ ability to swiftly implement a tariff on imported semiconductors. He noted that the rapid imposition of such a tariff could lead to significant costs to the country.
According to Focus Taiwan, Friedberg communicated via email that while U.S. President Donald Trump aims to use tariffs to incentivize companies to manufacture within the U.S., these threats are unlikely to be enacted quickly. Friedberg emphasized that increasing U.S. semiconductor manufacturing capacity might take several years, and high tariffs could escalate costs, reducing the competitiveness of other American industries. He further suggested that the threats would not be executed all at once or soon.
Friedberg stated that Trump’s tariff threats were intended to motivate both domestic and foreign manufacturers to enhance their investments in the U.S. He suggested that the U.S. might employ not only the threat of tariffs but also positive inducements and incentives to encourage increased investment from Taiwanese and other foreign companies.
On Tuesday, Trump mentioned his intention to impose a 25 percent tariff on semiconductors, cars, and pharmaceuticals, with an official announcement expected by April. He indicated that the tariffs would start at 25 percent and increase substantially over a year. Trump has accused Taiwan of “stealing our chip business.” Meanwhile, Joseph Wu, secretary-general of Taiwan’s National Security Council, defended Taiwan Semiconductor Manufacturing Co. (TSMC), describing it as a self-made success.
TSMC is planning a $65 billion investment in Arizona to construct three advanced fabs, and with Trump’s tariff threats looming, it is speculated that TSMC may establish more sophisticated IC assembly plants in the U.S. or potentially acquire a stake in Intel Corp.’s fab operations.
TechSpot, a U.S.-based tech website, reported that the U.S. and other Western countries are less efficient than Taiwan in building semiconductor fabs, stating that constructing such plants in the U.S. takes twice as long and costs twice as much as in Taiwan. The report highlighted TSMC’s challenges in the U.S., including difficulties in finding skilled local workers, cultural differences, and navigating local regulations.
Furthermore, John Bolton, former National Security Advisor to Trump, told CNA in an interview that imposing a tariff on chips from Taiwan would not alter the fact that the U.S. relies heavily on Taiwan-manufactured chips. He noted that developing cutting-edge IC capabilities within the U.S. is not feasible overnight.