Taiwanese semiconductor company Vanguard International Semiconductor has cautioned that U.S. tariffs on imported chips could trigger inflation and hamper global economic growth, though the firm expects any direct impact on its business to be minimal.
Speaking on a post-earnings call, Vanguard Chairman Leuh Fang adopted a “wait and see” approach amid uncertainty over how far the Trump administration will pursue its tariff threats. Last week, President Donald Trump announced plans to impose around 25% tariffs on auto imports as well as similar duties on semiconductors and pharmaceutical products - a move that could disrupt international trade flows.
"If tariffs are implemented... it will cause many impacts, from inflation to a decline in end-product purchasing power, and even affect expected economic growth," Fang told analysts. However, he added that Vanguard’s exposure is limited since the company manufactures legacy, or mature node chips used primarily in cars and display panels. “The proportion of our company’s semiconductor products directly exported to the U.S. and facing tariffs is very low,” he said.
The announcement comes as tensions between the U.S. and China continue to shape the global semiconductor market. Amid aggressive capacity expansion and steep price cuts by Chinese foundries, many American customers have begun shifting orders to Taiwanese suppliers- a trend that Fang expects will intensify.
In related news, industry rival TSMC is building chip factories in Arizona, while several Taiwanese laptop and AI server makers are also considering moves to expand U.S. production to circumvent potential tariff impacts. Notably, TSMC owns 27.15% of Vanguard’s shares, underlining the interconnected nature of the regional supply chain.
For the quarter ended December 31, Vanguard posted a 19.4% year-on-year increase in revenue to T$11.55 billion ($352 million) and a 48.7% jump in gross profit to T$3.314 billion, reflecting strong performance despite the broader market uncertainties.
As the global semiconductor industry braces for possible trade disruptions, Vanguard’s cautious outlook underscores the complex interplay between tariff policies, inflationary pressures, and shifting supply chains in an increasingly volatile economic environment.
TEKNOFEST opened its doors on Wednesday (17 September) at Istanbul Ataturk Airport, bringing together technology lovers, innovators, and entrepreneurs...
Venezuela will launch a large-scale, three-day military exercise near La Orchila island, involving thousands of troops, naval vessels, aircraft, and d...
Around 300 local and international media representatives will be accredited at the Media Centre established by the Baku City Circuit Operations Compan...
Chinese President Xi Jinping and U.S. President Donald Trump are expected to attend the Asia-Pacific Economic Cooperation (APEC) summit next month in ...
Saudi Arabia and Pakistan have formalised a mutual defence agreement, reinforcing a decades-long security partnership, Pakistani state television repo...
A rocket launched by Taiwanese company TiSpace from Japan's northern Hokkaido island failed shortly after takeoff on Saturday, falling short of its goal to become the first foreign firm to complete a successful launch from Japanese soil.
British junior trade minister Douglas Alexander is visiting Taiwan for trade talks, a move that could strain relations with China despite efforts to improve ties.
China condemned a new U.S. tank shipment to Taiwan, warning Washington it is "playing with fire." Beijing told Taipei's leaders that "U.S. weapons cannot save them," calling the move a dangerous provocation that crosses a fundamental "red line."
China has issued a formal protest against the United States over recent remarks by Defence Secretary Pete Hegseth, accusing Washington of “vilifying” Beijing and promoting confrontation in the Indo-Pacific.
AnewZ has learned that India has once again blocked Azerbaijan’s application for full membership in the Shanghai Cooperation Organisation, while Pakistan’s recent decision to consider diplomatic relations with Armenia has been coordinated with Baku as part of Azerbaijan’s peace agenda.
A day of mourning has been declared in Portugal to pay respect to victims who lost their lives in the Lisbon Funicular crash which happened on Wednesday evening.
A Polish Air Force pilot was killed on Thursday when an F-16 fighter jet crashed during a training flight ahead of the 2025 Radom International Air Show.
At least eight people have died and more than 90 others were injured following a catastrophic gas tanker explosion on a major highway in Mexico City’s Iztapalapa district on Wednesday, authorities confirmed.
China has entered the United Nations’ annual list of the world’s ten most innovative nations for the first time, displacing Germany, Europe’s largest economy, as companies in Beijing ramp up investment in research and development.
Microsoft and OpenAI announced Thursday a non-binding deal outlining terms that would allow OpenAI to restructure into a for-profit company, marking a key step in the high-profile partnership fueling ChatGPT’s growth.
The U.S. Federal Trade Commission has launched an inquiry into seven technology companies over how their AI chatbots interact with children, amid rising concerns about safety and mental health risks.
Nvidia (NVDA.O) announced on Tuesday that it plans to release a new artificial intelligence chip by the end of next year, designed to manage complex tasks like video creation and software development.
Apple (AAPL.O) on Tuesday opened its annual showcase, where it is expected to reveal a new range of iPhones, including a slimmer “Air” model that could foreshadow the launch of a folding phone next year.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment