NVIDIA (Nvda), TSMC (TSM), and other flea actions fell on Wednesday in exchange after the opening hours after the announcement of President Trump of reciprocal prices sweeping affecting the semiconductor supply chain.
Nvidia’s shares fell 4.7%, while micro advanced rival devices (Dmla) plunged 4.5%. Broadcom (Avo) dropped by 5.2% and Micron (Mu), which provides memory chips for NVIDIA GPUs – graphic processing units – flowed 6.4%.
TSMC, the manufacturer of Taiwanese contractual chips which manufactures the most advanced semiconductors in the world for Nvidia and Apple (Aapl), flow 4.8%.
Nvda TSM
Trump said on Wednesday afternoon in A highly anticipated announcement that the administration implements reciprocal rates varying according to the country in addition to a global basic rate of 10%. This respectively includes reciprocal prices of 34% and 32% on imports from China and Taiwan. Both are among the largest servers exporters, including AI servers using NVIDIA GPUs in the United States.
The American prices on imports from these countries would make purchases of servers using the GPUs of Nvidia more expensive, which could hinder the demand for IA fleas.
Taiwan has exported around $ 33 billion in computer parts, including NVIDIA GPUs in the United States in 2024 as well as for $ 19 billion in “computers”, a category that includes servers equipped with NVIDIA chips, according to commercial data compiled by the analyst of the supply chain and the professor of the State University of Michigan.
China has exported just over $ 16 billion in computer parts (including NVIDIA GPU) in the United States as well as $ 34 billion “computers”, including servers.
“Taiwan, they took all our computer and computer semiconductors,” said Trump on Wednesday. “We were the king, right? We were everything. We had all this. Now we almost have it.”
TSMC is the main producer of the most advanced computer flea in the world for American companies such as Apple, AMD, NVIDIA and even its Intel rival (Intruder). American flea manufacturers have outsourced production due to the operating costs of flea manufacturing factories, or “FABS”.
We do not know if where or how the prices would help bring back domestic manufacturing of fleas to the United States, but Trump stressed TSMC recently announced an investment of $ 100 billion to extend its production footprint of national fleas in Arizona.
TSMC began the process of expanding production in the United States under Biden with the financing of the US laws on flea and sciences – grants that Trump administration officials suggested could review.
“For any business that opposes our common sense, reciprocal prices … My answer is very simple,” said Trump. “If they complain, if you want your rate rate to be zero, you build your product here in America because there is no price if you build your plant, your product in America.”