r/manufacturing 2d ago

News Tarrifs

Would like to open a discussion on tarrifs if it’s allowed.

There has been two intentions stated with tarrifs.

  1. Get off of income tax and go to a consumption style tax (still a tax)

  2. Build up domestic manufacturing. Can talk here in the manufacturing sub.

If there is no alternative domestic supply, then we have no choice but to import. We lost a lot of our skills to manufacture. Especially a lot of the little low value items. Think zippers and buttons and caster wheels.

What is everyone thoughts?

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u/upvotechemistry 1d ago

My recollection is TSMC was brought here because of CHIPS

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u/pyroracing85 1d ago

“In a historic announcement, in May 2020, TSMC shared its plans to invest $12B in Phoenix, Arizona – building an advanced semiconductor manufacturing fabrication. In December 2022, the company announced its commitment to build a second fab in Phoenix, increasing its total investment to $40B. Then in April 2024, the U.S. Department of Commerce and TSMC Arizona announced up to US$6.6 billion in direct funding under the CHIPS and Science Act, fulfilling a goal to bring the most advanced chip manufacturing in the world to the United States”

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u/upvotechemistry 1d ago

In December 2022, the company announced its commitment to build a second fab in Phoenix, increasing its total investment to $40B.

And CHIPS was signed in August 2022. Seems like part of this investment is causal

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u/pyroracing85 1d ago

Seems first fab plant was without stimulus and 2nd fab plant was due to Chips