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AI

TSMC Indicates Trump’s Efforts to Block China from Accessing AI Chips May Be Ineffective

Photo credit: arstechnica.com

“Despite TSMC’s ongoing efforts to adhere to all applicable export control and sanctions laws, there are no guarantees that its operations will remain compliant,” the company stated.

Additionally, TSMC cautioned that “should TSMC or its partners fail to secure the necessary licenses for import, export, or re-export, or if found in violation of related laws, the company could face significant repercussions. This may include not only reputational damage but also the potential for government investigations and legal penalties.”

Potential Impact of Trump’s Tariffs on TSMC’s Operations

TSMC has maintained its success despite facing tariffs and export restrictions, with some analysts noting that the company has seemed to thrive under these conditions. Nonetheless, this status could be jeopardized by recent announcements from former President Donald Trump in 2025 regarding the potential implementation of broader tariffs on imports.

Any new tariffs on semiconductor imports or on products that include semiconductors could raise the prices for such products. This increase in costs may lead to reduced demand for TSMC’s offerings, which could negatively impact its business operations and future growth prospects.

Furthermore, if TSMC is disturbed by heightened tensions from the US-China trade conflict, the consequences could extend far beyond the company itself, potentially disrupting the entire global semiconductor supply chain.

The specifics surrounding Trump’s semiconductor tariff strategy remain unclear. Recently, he indicated that the details would emerge “within the next week,” as reported by Reuters , suggesting announcements could be imminent.

Source
arstechnica.com

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