Donald Trump wants to bring chip manufacturing back to the USA

Self-willed! Donald Trump wants to bring chip manufacturing back to the USA

2025-02-20 Source: dpa 1 min Reading Time

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The US President has strange notions about why chips are mostly produced in Asia, which is why he seems to want to bring the industry to the USA with threats...

Donald Trump is now vigorously advocating for the manufacturing of computer chips to move from Taiwan back to the USA, as the dpa has learned...(Image: Chippendales) — Donald Trump is now vigorously advocating for the manufacturing of computer chips to move from Taiwan back to the USA, as the dpa has learned...
(Image: Chippendales)

US President Donald Trump has urged the chip industry to shift production increasingly to the USA: "Taiwan has taken the chip business away from us." Trump now demands bringing the business back to the USA. And if that doesn't work, we won't be very happy, he warned. US chip manufacturers (like Intel) once laid the industry's foundation. However, particularly advanced chips are now mainly produced in Taiwan, even if they are developed in the USA. Industry experts attribute the change, among other things, to the fact that authorities lured manufacturers with generous subsidies over several decades.

First tariffs, now relocation after all

The great concern in the West now is that, for example, the supply of smartphone chips could collapse if the Chinese government blockades Taiwan. Trump's predecessor Joe Biden launched a nearly 40 billion dollar (38 billion euro) subsidy program to create incentives for setting up chip manufacturing in the USA. Europe followed suit with similar plans. Trump criticized the initiative during the election campaign as a waste of money and indicated that he would prefer to rely on tariffs instead: "We had Intel, we had these great companies that were doing so well! And that was taken from us. We want this business back!"

Failed pursuit in terms of chips

However, Intel has been trying for years to catch up with Taiwanese market leader TSMC in terms of production processes. Recently, Intel CEO Pat Gelsinger had to step down after the catch-up race dragged on. And in Europe, Intel put the construction of a new factory in Magdeburg (Germany) on hold due to tight finances, despite having been promised state support worth billions.

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