How Donald Trump’s ‘US First’ may have a brake on the region that was working to bring back the trade in America
The “America first” principle has already become the identity of the foreign policy of Trump administration, American semiconductor industry To give a strategic push to the government’s encouragement and domestic production, manufacturing was actively working to bring back home. As reported by the Associated Press, the Greater Sacramento region stands as a prime example of this resurrection, where the technical giants such as Intel, AMD, Bosch, Samsung and Micron are expanding, forming on the decades-length appearance of Intel. This growth is part of a nationwide trend, with billions of dollars invested in research, development and manufacturing.However, President Donald Trump’s recent trade policies, including the proposed tariffs and chip imports, are putting a shadow of uncertainty on this cumbersome industry.
What is hurting semiconductor companies in America
Mario Morales, an analyst in international data corp, told AP, “You are now starting to see some of it. Samsung announced a delay in fabs in Texas.” “This facility was going to be online in 2024, now it is being delayed by 2028. I think some of these companies are delaying it because they now know that they are probably not receiving funding, or due to uncertainty around the acts we are looking around the new trade policy.”According to the Semiconductor Industry Association, despite being a major manufacturer of some US semiconductor chips, its global market share has come down from 37% in 1990 to 10% in 2022. This dependence on imports, especially from Taiwan and South Korea, inspired to be passed Chips and science act In 2022, the goal is to revive domestic manufacturing and reduce the supply chain weaknesses.
Benefits of Chips Act
The Chips Act, championed by the previous biden administration, has promoted significant investment, with estimates that the US has exceeded its semiconductor manufacturing capacity, globally, the highest growth rate, May 2024, according to the May 2024 report of the semocover industry association and Boston Consulting Group.Barry Broom, president of the Greater Sacramento Economic Council, told AP that the epidemic outlined the risks of relying on offshore production. “It was clearly clear that these chip products were serious implications from being offshore to cost savings in Vietnam, Taiwan, China.”The area’s established technical infrastructure and skilled workforce have attracted major investments, such as a $ 1.9 billion project of the bosch, to produce electric vehicle chips, up to 1,700 jobs.Dinakar Mungla, cofounder of Sacramento-based AI Startup Blase, highlighted the increasing interest from defense and border security sectors in domestic chips. “We are built here,” he told AP.
Trump tariffs cause confusion, earn experts
The Trump administration sees domestic chip production as a national security compulsory, aims to reduce dependence on foreign suppliers and reduce the risks associated with concentrated manufacturing. However, the liquidity of the tariff policies of the administration is causing concern.Forester senior analyst Alvin Guayen told AP that “the liquidity of the state’s liquidity ‘will create confusion about the impact on the supply chain” due to the complexity of trekking where materials and manufactured goods are produced and gathered. “Uncertainty has already affected industries, adjusting prices in response to a possible tariff growth such as video game companies. Broom hoped that tariffs are a short -term measure for restructuring global trade relations, causing caution that prolonged uncertainty could prevent investment. “If the tariff is used to get a better agreement in the next two or three months, we will come back quickly, and will benefit from it,” he told the AP. “If they are considered a long -term policy, I think it will actually snow the capital markets by putting real money on the table.”
