Tue, 15 Apr 2025

Tue, 15 Apr 2025 The perils of Trump's chips strategy: the US will struggle to take on Asia

America is trying to create a chip industry through isolation and protectionism, when what allowed it to emerge in Asia is the opposite: collaboration

* The US has fallen behind China and other Asian countries in chip manufacturing, with experts saying it will take time and collaboration to catch up.
* President Trump's tariffs on semiconductors have caused a rift in the industry, with some companies looking for new markets or ways to circumvent the levies.
* India is seen as a potential emerging hub for chip manufacturing, but faces challenges such as land acquisition and water supply.
* The reliance of major US companies like Apple and Microsoft on chips could pressure Trump to reverse any tariffs on the sector.
* Insiders believe intense lobbying by Apple CEO Tim Cook may have secured exemptions for some Apple products from tariffs.
* Trump's approach to chip manufacturing has been criticized as protectionist, with experts saying that collaboration in a globalized economy is key to success. Key points:
* The US lags behind China and other Asian countries in chip manufacturing
* President Trump's tariffs on semiconductors have caused a rift in the industry
* India is seen as a potential emerging hub for chip manufacturing
* Major US companies rely heavily on chips, which could pressure Trump to reverse any tariffs
* Experts say that collaboration in a globalized economy is key to success in chip manufacturing.
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