How has industry not completely fucking lost it with this guy? Every goddam day there is some new rule or twist. How can any company, especially in this industry, do business like this?
So, we’re gonna see a whole bunch of new domestic factories making billions of USB charger and LED lighting driver chips is what you’re telling me? Great, I love cheap chargers and LEDs.
The first thing I thought about was “there’s suddenly going to be lot of 2N2222 available”
Never underestimate the willingness of a corporation to create pre-destined garbage to save money. Literally whatever the cheapest option is. Ford produced the US gen 1 Transit Connect van in Turkey. To avoid the “chicken tax” that applies to light trucks (see: original subaru baja with pickup bed seats), they shipped it with a shitty 2nd row seat and cargo doors with windows. It was classed as a passenger vehicle. Upon receipt, Ford swapped the doors for solid as needed and discarded the 2nd row.
Making garbage was cheaper than the tax. Without additional regulation, have no doubt these companies will try to make an assembly line that feeds right into a landfill.
Domestic potato chip production about to get a big boost.
Seriously, it sounds like they are not even requiring the same chip produced domestically. They’ll just make the dumbest cheapest chips. And if they can make any chip for less than the tariff, they’ll just make it, toss it and take a tax write off.
Fully expecting chip makers to just manufacture a bunch of cheap garbage here that eventually ends up in a landfill in order to avoid the tariffs on their expensive chips. With a 100% tariff and prices per-chip in the $300+ range if they can make a chip for less than $300 even if they immediately chuck it in the garbage they’re saving money. Imagine a whole tray of cheap 500nm chips that are full of defects because they were made with wafers that failed QA. They manufacture them, document that they exist, dump them in a bin in a warehouse, then just throw the bin away in a year as unsold inventory and write it off as a business loss.
99% chance Trump thinks this about Doritos.
For every quad-core A57 ARM produced in Taiwan just make a 74LS00 in the US, that is something the American chip industry might just about manage.
