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The implications of Trump’s comments on the semiconductor industry

Recent statements by U.S. presidential candidate Donald Trump accusing Taiwan’s semiconductor industry of stealing American business and demanding protective taxes have cast a shadow over the globally booming semiconductor industry.

This protectionist rhetoric, coupled with the Biden Administration's plans to impose severe sanctions on allied manufacturers that export chip technology to China, is creating considerable uncertainty in the market.

The threat of protectionism

The global semiconductor industry has already faced the AI chip war between the United States and China in the broader context of competition between the two superpowers. Now, Trump’s protectionist agenda adds further complexity for major industry players.

Potential impacts on the industry:

  • Intel and GlobalFoundries: Although they may benefit somewhat from Trump’s policies, U.S. dependence on TSMC for advanced AI chips and high-end mobile processors makes the situation uncertain.
  • ASML: A critical supplier of advanced process equipment to TSMC, ASML is threatened not by Trump’s comments, but by the Biden Administration’s potential sanctions on equipment exports to China, which account for half of its sales.

The possible collapse of the semiconductor supply chain

According to the Wall Street Journal, the fall of Taiwan to China would mean the end of the U.S.-Pacific alliance system that has kept the peace for the past 80 years. If Trump dismantles the Biden-era strategic alliance between Taiwan and the United States and abandons the obligation to protect Taiwan, the alliance system could collapse under his leadership.

Implications for your sectors and distribution

  • Risk of supply chain disruptions: Protectionist rhetoric and sanctions could cause disruptions in semiconductor supplies, affecting the availability of electronic components and, consequently, your production.
  • Increased costs: Restrictions and sanctions are likely to increase production costs, which would, in turn,  affect the prices of finished products.
  • Need for diversification: Companies like yours should consider diversifying your sources of supply and investing in alternative manufacturing capabilities to mitigate the risks associated with geopolitical tensions.

How we can help you

As independent distributors, we at Electronic Partners are here to support manufacturing companies like yours during this time of uncertainty. We offer flexible and reliable solutions to ensure continuity of supply and access to the electronic components needed to keep production running at optimal levels.

The benefits we offer manufacturing companies:

  • Best prices globally: We assure you the best purchasing conditions through our carefully selected and pre-approved global network.
  • Guaranteed quality: Our components are tested and certified by independent laboratories external to supply chains. We collaborate with independent laboratories that conduct targeted testing based on nonconformities found for specific components, data codes and batches. We carefully evaluate their responses and, if necessary, refer to other testing laboratories with more specific expertise to ensure optimal results. This approach allows us to guarantee you the highest quality and authenticity of the materials we source.
  • Investment protection: The security of your payments is guaranteed by certified intermediary entities.
  • Supply chain flexibility: With us, you can optimize your procurement time appropriately, securing reliable supply through alternative channels as necessary.

If you are concerned about the implications of protectionist policies and sanctions on your business, contact us today. 

Our team of experts is ready to work with you and your company to find the best solutions tailored to your needs. Together, we can navigate these turbulent waters and ensure your business thrives.

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