What are semiconductors and why is Trump threatening 100% tariffs?
11 hours ago Share Save Liv McMahon & Shiona McCallum Technology reporters Share Save
Getty Images The manufacture of the tiny tech that powers billions of devices is under a microscope.
US President Donald Trump has said he plans to introduce 100% tariffs on semiconductor imports. The tiny chips power a range of different devices and are integral to modern technology and the global economy. While some semiconductor producers could be spared from the taxes, they may still impact the tech industry and could push up the price of some products. What are tariffs and why is Trump using them?
What is a semiconductor and how are they used?
Semiconductors have enabled a slew of modern devices - from smartphones and laptops to video game consoles, pacemakers and solar panels. Sometimes referred to as microchips or integrated circuits, they are made from tiny fragments of raw materials, such as silicon. Semiconductors, as the name suggests, can partially conduct electricity - alternating between doing so and acting as an insulator. This allows them to be used as electronic switches, speaking the binary language of 0s and 1s that underpins computing. Semiconductors: How the humble chip changed everything
Getty Images Thin slices of silicon that resemble large disks, known as wafers, are used as the base for semiconductors.
Which countries make semiconductors?
The UK, US, Europe and China rely heavily on Taiwan for semiconductors. The country's Taiwan Semiconductor Manufacturing Company (TSMC) provides over half of the world's supply. Founded in 1987 as the world's first foundry - dedicated to producing semiconductors for device manufacturers - TSMC now makes them for tech giants like Nvidia, Apple and Microsoft. It has also been caught up in so-called "chip wars" between the US and China. Each country has tried to slow or cut off the other's access to essential components, materials and parts of supply chains as they race to develop the best tech. Samsung Electronics in South Korea is the next biggest supplier. Together with SK Hynix, it has established the country as one of the world's biggest semiconductor hubs - particularly for the supply of memory chips. The secret sauce for Taiwan's chip superstardom
Why is the world investing so much in semiconductors?
... continue reading