President Trump has clearly expressed his administration's criteria towards semiconductor tariffs, and the main requirement is to invest in the US chip industry, to avoid hefty taxation.
TSMC, Samsung, Micron & Many Firms Are Likely To Be Excluded From Substantial Chip Tariffs, Which Are Dropping Soon
The Trump administration has been planning chip tariffs under Section 232 for quite some time now, and the Commerce Department is investigating the scope of these tariffs and which companies will be affected. At the dinner with prominent US tech CEOs, President Trump was asked about semiconductor tariffs and how they could play out, and he revealed a rather 'strict' requirement. The Trump administration will impose substantial tariffs on firms that are not yet willing to invest in the US.
Yeah, I have discussed it with the people here. Chips and semiconductors - we will be putting tariffs on companies that aren't coming in. We will be putting a tariff very shortly. We will be putting a very substantial tariff, not that high, but fairly substantial tariff with the understanding that if they come into the country, if they are coming in, building, planning to come in, there will not be a tariff.
- President Trump via Reuters
Now, interestingly, under this requirement alone, several key chip firms are likely to be exempted under Section 232 tariffs, and this includes the likes of TSMC, Samsung, SK hynix, Micron, and many others, who are a key part of the supply chain. President Trump revealed intentions to impose up to '100% tariffs' on chip imports for companies that aren't manufactured in the US; hence, we could see a tariff rate somewhere along that figure, but this isn't certain for now.
Under the Biden era, the administration boosted US-based chip production by providing tax grants and incentives under the CHIPS Act, but under the Trump administration, the approach is much more aggressive, with trade being used as a tool. Interestingly, this tactic has played out pretty well, since all major chip firms are ready to invest 'hundreds of billions' in the US to support America's chipmaking ambitions.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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