HONG KONG, August 8. /TASS/. A proposed 100% tariff on chip imports announced by US President Donald Trump could shift most of Taiwan's semiconductor production to the United States, Arisa Liu, an expert from the Taiwan Institute of Economic Research (TIER) said in a telephone interview with the Taipei Times newspaper.

"Trump’s tariff policy will accelerate the global semiconductor industry’s pace to establish roots in the US, leading to higher supply chain costs and ultimately raising prices of consumer electronics and creating uncertainty for future market demand," the newspaper quotes the expert as saying.

She noted that Trump previously used a "carrot strategy," using incentives such as raising the investment tax credit for chip makers to 35% to encourage investment in semiconductor manufacturing. Now he is using a stick, imposing punitive tariffs if companies do not invest in the United States.

Trump’s move signals his intention to "restore the glory of the US semiconductor industry," Liu noted.

Arisa Liu believes that the world's largest chip maker, Taiwan Semiconductor Manufacturing Co (TSMC), will be exempt from this high tariff, since it is actively investing in production in the United States. But ultimately, such a tariff policy could push TSMC's suppliers and related companies to completely transfer their production to the United States, which "could lead to a decline in Taiwan-based semiconductor production and potentially affect employment, wages and local investment in Taiwan," she believes.

TSMC previously said it would invest an additional $100 billion over the next four years to expand its US semiconductor manufacturing capacity. The plan is to build three new chip factories, two advanced chip packaging facilities and an R&D center in the US.