Trade fights between America and China threaten to slash global chip markets sharply. Research firm TechInsights warns that high tariffs could shrink the semiconductor industry by more than a third from expected levels.
The Trump team backed off some tough trade talk recently. They set a 10 percent tariff for most countries but kept China facing a 145 percent tax. The president temporarily lifted fees on Chinese electronics and phones, which currently pay only a 20 percent Fentanyl-related charge. Auto companies might get limited breaks to help them move their supply chains from Mexico and Canada.
China struck back with 125 percent tariffs on American goods. They banned sending rare earth metals to the US as they create rules to cut off American military supplies. These metals power many industries, especially electric motors. Despite having resources, the US needs major money, energy, and partners to process its raw materials.
With global tariffs at 10 percent, chips would grow to a $844 billion market by 2026. But if current high taxes stay, the market will fall to $696 billion next year and crash to $557 billion in 2026. A middle scenario with US-China tariffs between 30 and 40 percent would create a $699 billion market next year.
The Trump team backed off some tough trade talk recently. They set a 10 percent tariff for most countries but kept China facing a 145 percent tax. The president temporarily lifted fees on Chinese electronics and phones, which currently pay only a 20 percent Fentanyl-related charge. Auto companies might get limited breaks to help them move their supply chains from Mexico and Canada.
China struck back with 125 percent tariffs on American goods. They banned sending rare earth metals to the US as they create rules to cut off American military supplies. These metals power many industries, especially electric motors. Despite having resources, the US needs major money, energy, and partners to process its raw materials.
With global tariffs at 10 percent, chips would grow to a $844 billion market by 2026. But if current high taxes stay, the market will fall to $696 billion next year and crash to $557 billion in 2026. A middle scenario with US-China tariffs between 30 and 40 percent would create a $699 billion market next year.
