President Donald Trump declared on September 5, 2025, a sweeping new policy to impose a 100 percent tariff on semiconductor imports from firms that have not committed to relocating their manufacturing operations to the United States.
This initiative is designed to stimulate domestic production of critical microchips, reduce dependency on foreign suppliers, and enhance national security by securing the semiconductor supply chain.
The tariffs will target a wide array of semiconductor products imported from companies that fail to establish or expand manufacturing facilities within the U.S.
However, exemptions will be granted to firms like Taiwan Semiconductor Manufacturing Company, which have already invested billions in American chip fabrication plants.
The administration emphasized that companies investing in U.S. production will be shielded from these tariffs, reinforcing the goal of incentivizing onshore manufacturing.
Industry experts caution that while the tariffs may accelerate the shift of semiconductor manufacturing to the U.S., they could also disrupt global supply chains and lead to higher costs for technology companies and consumers.
South Korea’s government, home to major chipmakers Samsung and SK Hynix, has expressed concerns but confirmed that firms with U.S. investments will be exempt from the tariffs.
The White House maintains that this policy is crucial for maintaining America’s technological edge and economic competitiveness.
This announcement follows months of pressure from the Trump administration on semiconductor companies to prioritize U.S.-based production.
The tariffs are expected to take effect immediately, with strict enforcement measures to ensure compliance.
The move signals a significant shift in trade policy, aiming to reshape global semiconductor manufacturing by encouraging firms to bring production back to American soil.
Source: Reuters
Written By Ian Maleve
