this post was submitted on 28 Jan 2025
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Trump to impose 25% to 100% tariffs on Taiwan-made chips, impacting TSMC (www.tomshardware.com)
submitted 3 days ago by Eyekaytee@aussie.zone to c/technology@lemmy.world
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[–] perestroika@lemm.ee 12 points 2 days ago* (last edited 2 days ago) (1 children)

Maybe I'm misreading because one poster above deleted their comment, but I can't understand: how exactly has TSMC shown "disrespect"? Or was the poster showing disrespect?

Putting corporations aside and speaking of states: the US and Taiwan have respectful and friendly relations. They depend on each other.

Now, a tariff of 25-100% on a partner's primary export and one's own vitally important import is more like putting a shotgun to one's leg out of spite. It would be hurting oneself and hurting the other side - and not a little bit.

The US is a store that Taiwan frequently shops in - a very big defense equipment store, I should say. Some of the toys cost money, but if you buy enough, you get kickbacks - the US gives Taiwan some security assistance for free. It also says it will assist Taiwan if anyone (we can imagine who that might be) attacks it.

Meanwhile, Taiwan is a store the world frequently shops in - a very big microprocessor, memory and microcontroller store. Frequent customers can tell TSMC "it would be nice if you brought some of your business here, we have a vacant spot suitable for your plans". And it works: one factory will be built in the US, one factory in the EU. Maybe elsewhere too. Getting that to happen didn't need Trump or insane levels of customs tariffs.

To achieve that, people just negotiated like normal people do. TMSC know they operate in a country prone to violent earthquakes and close to an agressive neighbour, they are quite OK with placing some of their business abroad.