The entire atmosphere around the smartphone industry and the tech world at large has been tense since the elections. A major reason for this are Trump’s proposed tariffs which have scared consumers and companies alike. Almost everyone is adamant that these tariffs will lead to more expensive goods for the end consumer as companies will simply raise prices to offset tariff costs.
It also doesn’t help that Trump has had some not-so-kind things to say about Taiwan’s semiconductor industry and TSMC in particular. In his words, TSMC has “stolen 95 percent of our business” and placed it in Taiwan instead. Trump’s end goal with his tariffs seems to be to force companies to bring their manufacturing back to the United States, an admirable goal if somewhat farfetched.
Designed in California and assembled in…also California? | Video credit — Apple
The ceremony, which was to be attended by current President Joe Biden as well, is now rumored to have been postponed till February. This postponement likely signals TSMC’s cautious approach to conducting business in the U.S. now that Trump has won. It’s likely that the company is waiting to see what policies take effect after Trump is sworn in on January 20.
There is a strong possibility that nothing will come of this: the U.S. relies too heavily on TSMC and the Taiwanese company doesn’t really have any formidable competition. However, if the Trump administration does take some controversial steps we might just see the Phoenix plant close down before it’s even fully operational.
Just like the Samsung Foundry plant in Taylor, Texas.