Los Angeles (AP) – Even if he swore to promote the United States in artificial intelligence research.
Since taking office, Trump has declared that he would place tariffs for the foreign production of computer chips and semiconductors in order to raise the US law to US law, which also tried to raise domestic production.
However, economic experts have warned that Trump’s double approach would sluggish down or potentially harm the goal of the government to ensure that the United States maintains a competitive advantage in research for artificial intelligence.
Saikt Chaudhuri, expert in corporate growth and innovation at the Haas School of Business by UC Berkeley, surprisingly described Trump’s mockery of The Chips Act because one of the greatest bottlenecks for the progress of AI was chip production. According to Chaudhuri, most countries try to promote chip production and import of chips at affordable prices.
“We saw what the defect did in everything from AI to cars,” he said. “In pandemic, the cars had to do with less or less powerful chips in order to only deal with the restrictions on offer.”
The bidet administration helped to cause law management after the start of the Covid 19 pandemic-a lack of chips plunged into factory assembly lines and the inflation plug in the US economy into the recession. In the effort of the investment, the legislators also said about China’s efforts to control Taiwan, which is more than 90% of the advanced computer chip production.
From August 2024, the chips and science act for 23 projects in 15 states supported $ 30 billion, which, according to the trade department, would add 115,000 jobs for processing and construction work. This financing has contributed to collecting private capital and enabling the United States to produce 30% of the most advanced computer chips in the world, from 0% when Trump’s first term of office took place.
The administration promised $ ten billion to support the construction of US chip giefs and reduce the dependency on Asian suppliers, which Washington sees as security weakness. In August, the trade department promised to provide up to 6.6 billion US dollars so that the Taiwan Semiconductor Manufacturing Co. can expand and better ensure that the most advanced microchips are produced domestically for the first time.
But Trump said he believed that companies that conclude these contracts with the federal government like TSMC did not need money to prioritize chip production in the USA
“They needed an incentive. And the incentive will not want to pay at 25, 50 or even 100% tax, ”said Trump.
TSMC held board meetings for the first time in the USA last week. Trump has signaled that if they want to avoid tariffs, companies have to build their plants in the United States – without the aid of the government. Taiwan also sent two high -ranking business officers to Washington to meet the Trump administration to ward off a 100% tariff that has to improve chips.
When the Trump government raises tariffs, Chaudhuri said that it is an immediate concern that the prices of goods that apply semiconductors and chips will raise, since the higher costs associated with tariffs are usually passed on to consumers .
“Whether it is your smartphone, whether it is your play equipment, whether it is your intelligent refrigerator – probably also your intelligent functions of your car – everything we use today has a chip,” he said. Be pretty painful.
Even tech giants like Nvidia will finally feel the pain of the tariffs, although their margins are high enough to absorb the costs at the moment.
“They will all be negatively affected,” he said. “I can’t see anyone who benefits from it, except in the countries that jump on the train competitive and say:” You know what, we will introduce something like the chips act. “
In the largely based tariffs, a shot in the US economy foot would be, said Brett House, professor of professional practice at the Columbia Business School. The tariffs would not only raise the costs for companies and households across the board, said for the US ACI sector, they would massively raise the costs of one of their most crucial inputs: high-performance chips from abroad.
“If you cut off, cancel or threaten the chips, at the same time, when you largely offer the imports of AI and other computer technology on the property, you would be acute the industry,” said House.
Such tariffs would reduce the ability to create a domestic chip building sector and to send a signal for future investments that the political prospects are uncertain, he said. This in turn would have a terrifying influence on fresh capital allocations in the United States and at the same time make the existing flow of imported chips more exorbitant.
“The American technological industrial leadership was always supported by maintaining openness to global markets and immigration and working currents,” he said.
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Associated press authors Josh Boak and Didi Tang in Washington contributed to this report.
