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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 692.06-0.3%4:00 PM EST
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To: Johnny Canuck who wrote (70646)2/10/2026 3:08:03 AM
From: Johnny Canuck  Read Replies (1) of 70663
 
Financial Times article titled "US plans Big Tech carve-out from next wave of chip tariffs" (published around early February 2026, based on reporting context).

Key Summary:

The Trump administration is planning to exempt major US tech companies (hyperscalers like Amazon, Google, Microsoft, and others) from upcoming tariffs on imported semiconductors. This carve-out is tied directly to Taiwan Semiconductor Manufacturing Company (TSMC)'s massive investments in US chip manufacturing.

Main Details:

  • Mechanism: TSMC will allocate tariff relief to its US hyperscaler customers in proportion to its pledged US investments. This incentivizes shifting advanced chip production to the US while protecting the AI supply chain, which heavily relies on TSMC's cutting-edge nodes.
  • Investment Commitments:
    • TSMC has pledged $165 billion to expand US manufacturing capacity.
    • Under a US-Taiwan trade framework, tariffs on Taiwanese chip imports are reduced to 15% in exchange for a $250 billion investment commitment in US chipmaking.
    • During construction, Taiwanese firms building US plants can import 2.5× the new facility’s planned capacity tariff-free.
    • Existing US plants can import 1.5× capacity tariff-free.
  • Current Tariffs:
    • January 2025 tariffs already impose 25% duties on a narrow set of chips re-exported to China (affecting companies like AMD and Nvidia).
    • Broader tariffs on Taiwanese semiconductors are under consideration following a national security probe that recommended "significant" duties.
Industry & Policy Implications:

  • The policy balances Trump's tariff agenda with the need to avoid disrupting AI infrastructure growth (e.g., data centers, cloud computing, and AI model training).
  • It links trade concessions to industrial policy — companies investing heavily in US production get tariff offsets or exemptions.
  • Nvidia and AMD currently face 25% tariffs only on chips destined for China, not on those used for domestic AI build-out.
  • Officials will monitor implementation to prevent it from becoming a "giveaway" to TSMC while preserving tariff integrity.
Outlook:

  • Details are still fluid and have not been formally approved by President Trump.
  • The size of exemptions/rebates will scale with TSMC’s forecasted growth in US capacity.
  • This approach extends earlier national security reviews and aims to encourage domestic semiconductor production without crippling Big Tech's access to advanced AI chips from Taiwan.
Overall, the article highlights a pragmatic compromise in US trade policy: protecting strategic tech sectors (AI) while pushing for onshoring of critical chip manufacturing.
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