Trump’s 2024 Presidential Victory Could Reshape the Global Chip Industry
TC Microchips, today issued a statement on how the recent re-election of Donald Trump as U.S. President could drive shifts in the global semiconductor industry. With Trump’s known stance on tightening trade and technological restrictions with China, the company anticipates increased momentum toward a diversified semiconductor supply chain, potentially reshaping the global chip industry.
Trump’s previous administration established stringent trade restrictions on China, focusing on key technology sectors including semiconductors. His recent victory is likely to see this trajectory continue, placing renewed emphasis on bolstering semiconductor production in the U.S. and encouraging allies to reduce reliance on Chinese technology.
"President-elect Trump was most emphatic about his vision for trade and tariffs during his election campaign. It’s obvious that he’s still intent on limiting China’s access to critical technologies, such as advanced semiconductors and that could accelerate demand for chip manufacturing capacity outside of China,” said Luis Fernández, Chief Executive Officer of TC Microchips.
“This shift creates both challenges and opportunities, particularly for companies outside of the U.S. and China, as they position themselves to support a diversified and resilient global supply chain.”
As the U.S. seeks to restrict exports of advanced technology to China, global tech companies may increasingly source their semiconductors from manufacturers outside of China, creating substantial opportunities for companies in regions like Latin America and Southeast Asia.
“There are concerns that Mr. Trump’s focus on imposing tariffs on foreign producers could lead to the type of bottlenecks that resulted in shortages for automakers and other industries in the aftermath of the global pandemic. Our belief is that the rhetoric of the election campaign will be softened once he takes office in January 2025,” added Mr. Fernández
The prospects for Latin America
With China likely to accelerate its domestic chip development, Trump’s policies could push more investment towards emerging markets like Latin America, enabling growth for local semiconductor players and reducing the industry’s reliance on any single geographic region.
Trump’s administration is expected to increase funding for R&D focused on secure and resilient supply chains, potentially encouraging innovation in chip design and advanced manufacturing techniques among U.S. allies, along the lines of the Biden administration’s recent initiatives.
"Global technology companies are seeking stable, secure supply chains, and Trump’s election victory signals a renewed commitment to bolstering the U.S. and allied semiconductor industries," added Mr. Fernández . "At TC Microchips, we’re preparing to meet this demand and further expand our capabilities, ensuring we’re equipped to supply advanced chips to international clients seeking alternatives to China-based production."