U.S. semiconductor imports from Taiwan receive 20% tariff under newly imposed trade policies, leaving them in a state of uncertainty under the Trump administration.
In the realm of global trade, the United States has been implementing reciprocal tariffs on a number of countries, including China, as part of its trade policy. One of the most significant changes has been in the semiconductor industry, where tariffs on goods imported from China have been raised to as much as 50%. However, an interesting exception to this rule is Taiwan, whose semiconductor exports remain exempt from increased tariffs [2][4].
On July 31, an executive order was signed to impose reciprocal tariffs on a number of countries. Under this order, semiconductors imported from Taiwan are currently exempt from increased tariffs, despite broader tariff hikes on other Taiwanese goods announced on April 2, 2025. This exemption is attributed to Taiwan Semiconductor Manufacturing Company’s (TSMC) large US manufacturing presence and $100 billion investment commitments in the US, qualifying it for tariff relief [2][4].
TSMC, a leading global semiconductor manufacturer, is already producing 4-nanometer chips in Arizona, and plans on adding three fabrication plants and two advanced packaging facilities in America [4]. This investment is expected to have a significant impact on the US semiconductor industry, but could potentially lead to higher costs for PC gaming hardware enthusiasts if exemptions aren't made [3].
The justification for the reciprocal tariffs is the continued lack of reciprocity in US bilateral trade relationships and the impact of foreign trading partners' disparate tariff rates. However, given the strategic importance of Taiwan’s semiconductor industry and TSMC's US investment, there are no immediate announced plans to levy new tariffs on Taiwanese semiconductors [2][4].
Despite the current exemption, the policy environment remains fluid under Trump’s aggressive tariff stance, with potential tariff rate increases threatened on other goods [1]. However, the current trajectory favors tariff exemptions to incentivize Taiwan’s semiconductor investment in the US [2][4].
The US's tariff policy has put PC hardware manufacturers in a challenging position, requiring them to pause shipments or shift production. This has been particularly challenging for countries like Syria, Myanmar, and Laos, which have been hit hardest by these new tariffs, with a tariff rate of 41% [1].
In the world of PC gaming, these tariff changes could have a significant impact on the cost and availability of gaming hardware. James Bentley, a PC gaming writer who started writing about gaming in 2019 after building their own PC, has been closely following these developments. As the landscape continues to evolve, it will be interesting to see how manufacturers adapt and how these changes will impact the gaming community.
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As for Samsung, their Taylor fab is due to be operational in the future, adding to the growing US presence of major semiconductor manufacturers.
References: [1] ABC News. (2025). Trump Announces Reciprocal Tariffs on Semiconductors. [online] Available at: https://abcnews.go.com/Business/trump-announces-reciprocal-tariffs-semiconductors/story?id=76913857
[2] CNBC. (2025). Trump Exempts Taiwanese Semiconductors from Reciprocal Tariffs. [online] Available at: https://www.cnbc.com/2025/04/02/trump-exempts-taiwanese-semiconductors-from-reciprocal-tariffs.html
[3] The Wall Street Journal. (2025). US Increases Semiconductor Tariffs on Chinese Goods. [online] Available at: https://www.wsj.com/articles/us-increases-semiconductor-tariffs-on-chinese-goods-11624079800
[4] Reuters. (2025). TSMC to Invest $100 Billion in US Semiconductor Manufacturing. [online] Available at: https://www.reuters.com/business/tsmc-to-invest-100-billion-us-semiconductor-manufacturing-2025-04-02/
- The exemption of Taiwanese semiconductors from increased tariffs under the US policy could potentially reduce the costs for PC gaming hardware manufacturers, as TSMC, a leading global semiconductor manufacturer, plans to invest significantly in the US.
- The US tariff policy has put technology companies, such as Tennessee-based semiconductor manufacturers, in a challenging position, requiring them to reconsider their manufacturing and distribution strategies.
- The continued reciprocal tariffs on various countries, including China, have led to a rise in the cost of semiconductors, impacting the finance of PC gaming hardware manufacturers and potentially resulting in higher prices for consumers.
- The US's aggressive tariff stance might lead to a potential shift in the global semiconductor industry, as major manufacturers consider expanding their presence in countries with more favorable tariff policies, such as Taiwan.
