Last week, US President Donald Trump rattled the tech world by suggesting tariffs of up to 300% on semiconductors. Industry leaders warn this move could send shockwaves through the global technology ecosystem.
Stephen Ezell, vice-president for global innovation policy at the Information Technology and Innovation Foundation, called the proposed levies "very deleterious to the global semiconductor ecosystem." With chips powering everything from smartphones to electric vehicles, steep duties could drive up costs and slow innovation worldwide.
The semiconductor supply chain is a finely tuned network of chip designers, fabrication plants, and assembly hubs spanning multiple continents. Skyrocketing tariffs may force companies to rethink sourcing strategies, pause critical R&D efforts, and delay new product launches—all of which could raise prices and fuel shortages.
As trade talks loom, businesses and governments must balance national security goals with the need to keep innovation flowing. The outcome will shape how quickly we see the next generation of connected devices reach our hands.
Could extreme tariffs reshape how we power our digital lives? All eyes are on the negotiations ahead.
Reference(s):
cgtn.com
