Trump announces 100% tariffs on semiconductor imports

Asian chipmakers faced losses following Trump's tariffs on semiconductor imports.

Asia semiconductor stocks decline after Trump's tariff announcement

Asian semiconductor stocks declined on Thursday after U.S. President Donald Trump announced a plan to impose a 100% tariff on imports of semiconductors and chips. This announcement includes an exemption for companies manufacturing in the United States, though the specifics of this exemption remain unclear. Companies like Tokyo Electron and Renesas Electronics saw significant drops, while South Korean giants Samsung and SK Hynix reportedly may avoid the tariffs. Samsung's shares rose after a partnership announcement with Apple, while Taiwan Semiconductor Manufacturing Company (TSMC), the largest global chip supplier, also started strongly, buoyed by its recent U.S. investments. Trump's comments highlighted a potential shift in semiconductor manufacturing that could reshape industry dynamics.

The uncertainty created by Trump's tariff announcement poses immediate risks for many semiconductor firms, particularly smaller companies that lack the resources to adapt quickly. Analysts suggest that larger firms, such as Apple and TSMC, may ultimately benefit from this tariff structure, reinforcing their already strong positions in the market. However, the lack of clarity regarding the exemption criteria raises critical questions about how the industry will respond. This situation may lead to an adjustment period where companies scramble to meet new requirements or endure higher costs.

Highlights

As trade policies evolve, the semiconductor industry will need to navigate complex new landscapes.