they're not being forced too. Biden chip act is paying billions for tsmc to build fabs over there so they become self reliant...guess those cash handouts negate the extra cost of building over there...once manufacturing starts, there wont be a tariff on the end product, and a tariff on the raw materials of 10% is pocket change compared to the final price. The existings fabs then wont have to supply the US and wont be subject to the tariffs, nor will the markets they sell to, unless they too impose tariffs, which i very much doubt. it will however increase the supply side of things, as they'll be a lot more fabs producing wafers
there will be some turbulence in the meantime as supply routes are reorganised. A bit like oil price. Shot thru the rough when russia invaded ukraine and then Europe stopped importing...but price is now down to where it was before they invaded(actually lower now)..it's just the the trade routes are all different..russian oil that went to Europe is now going to India and China etc
I think in the long run it'll be a good thing, just because of the large increase in fabs..need more companies doing it though, just to create some form of competition..shame uk dont get a bit more proactive and build fabs also (thery offer bugger all incentives)...tsmc building a fab in europe also under new company name ESMC after €920 million sub by european comission (European Semiconductor Manufacturing Company) which will be complete in 2027..will be for manufacturing and car wafer, but frees up space elsewhere..all helps