By coinnews 
00:00 Speaker A
It’s time for tech support. Our weekly segment, all about technology and shares of one of the biggest tech companies out there in video, taking a hit today after news the company is expecting. President Trump’s curbs on Chinese exports will cost the company five and a half billion dollars. Meanwhile, President Trump touted in videos investment in the US on truth, social calling it big and exciting news. I want to bring in Yahoo Finance Tech editor Dan Hally. Dan, good to see you. Will Trump’s tariffs really bring tech manufacturing to the US?
00:45 Dan Hally
Uh, long story short, no. Uh, this is something that uh is kind of akin to uh, what Apple did with their $500 billion announcement saying, we’re investing 500 billion over four years. Um, but it’s, it’s not necessarily all, you know, like iPhone production lines or anything like that. It’s about building servers and certain factories and, and spending on uh other things uh, within video. It’s about uh, producing some of their blackwell chips at TSMC plants uh in Arizona. Um, but this isn’t, you know, uh, a wholesale movement of uh, Nvidia’s supply chain or, or any company’s supply chain to the US and, and that’s just not going to happen anytime soon. In fact, uh, a number of analysts that I spoke with basically said, look, you know, this is a way for these companies to kind of play the game uh, and ensure that they’re on Trump’s good side, uh, while also making kind of strategic investments. Obviously TSMC has been building uh, plants. They have their $165 billion earmarked for plants in Arizona, uh, companies like uh, AMD, uh, Nvidia, as I mentioned, Apple, uh, they’re using those plants to build these chips, but it’s not the volume that, you know, is going to the, the type of volume that’s going to fulfill all the needs of, of the the US, let alone the world. And, you know, I think uh, this is, as I said, more about strategic relationships with Trump than anything else.
03:16 Speaker A
So is it really possible to deglobalize the tech industry? And what type of risks are we talking about here?
03:27 Dan Hally
Yeah, I, I mean, look, it’s, it’s not, right? I mean, look at uh, uh, uh things like just silicon, right? The, the actual wafers themselves come from different parts of the world. I mean, you just break down a semiconductor and all of these pieces, it’s, it’s a global industry. That’s, it’s impossible to move these things just into the US. That’s, that’s wild. Uh, and so that’s just the chips, right? And then you look at everything else that use the, the, the chips, right? Smartphones, um, uh, if you want to try to build iPhones in America, you can maybe do the final assembly here, but you still have different pieces coming from different parts of the world. And it’s not just, you know, Southeast Asia and China, though, that’s where uh, a huge majority of the, the, the pieces come from. It’s also areas of Europe and, and South America, things along those lines. So it, this is something that uh, appears to be more of a fool’s errand than anything else. Uh, it’s more about, look, we, the Biden administration had this idea of ensuring that there was more semiconductor capacity in the US, which, which makes sense, but semiconductor capacity means building the chips. There’s more steps to just building the chips. There’s the silicon, there’s the packaging, uh, those need other plants, not, it’s not just like, you know, you push in a bunch of like a silicon wafer and outcomes a chip that you then drop into a computer. It’s much more complicated than that. And so it is truly a global supply chain. There’s, there’s really no way to fully onshore all of tech manufacturing, let alone a piece of tech manufacturing like that.
06:32 Speaker A
And you make a great point in that it’s all waves back to the, it’s everything from the natural resources in the type of silicon you’re being able to get in the raw materials, all the way through the packaging, the product, the lithography that takes place as well. Uh, so much to consider here. Dan, thanks so much for bringing this down for us.
07:08 Dan Hally
For sure.