Breakingviews - Chipmaking giants face triple tariff hit

Robyn Mak - Reuters - 09/04
Chipmakers will feel the heat of Donald Trump's tariff rampage. The exemption of semiconductors from the U.S. president's announced levies may not last. What's more, the blow to demand for phones and other consumer electronics will be painful for Taiwan Semiconductor Manufacturing , Samsung Electronics and peers. Surging costs also will disrupt their bold plans to set up factories in the U.S.
HONG KONG, April 9 (Reuters Breakingviews) - Chipmakers will feel the heat of Donald Trump's tariff rampage. The exemption of semiconductors from the U.S. president's announced levies may not last. What's more, the blow to demand for phones and other consumer electronics will be painful for Taiwan Semiconductor Manufacturing (2330.TW), opens new tab, Samsung Electronics (005930.KS), opens new tab and peers. Surging costs also will disrupt their bold plans to set up factories in the U.S.
That U.S. imports of semiconductors are not subject to reciprocal tariffs is hardly a reprieve for the industry. Speaking on Air Force One on Thursday, Trump warned, opens new tab more levies were on the way and "the [ones on] chips are starting very soon"; in February he suggested the latter could be 25% or higher.
In that scenario, the direct hit on chipmakers like $735 billion TSMC may be limited. The company booked roughly $60 billion, or 70% of sales, last year from North America-based customers such as Apple (AAPL.O), opens new tab and Nvidia (NVDA.O), opens new tab. But most of the processors they purchase are packaged and...
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