President Donald Trump on Wednesday announced 100% tariffs on imported semiconductors and chips in a move aimed at pressuring global tech and electronics companies to manufacture in the United States. However, the tariff will not apply to companies that are currently producing or have firmly committed to building semiconductor facilities within the country.
Trump Announces 100% Tariffs on Semiconductors
Speaking from the Oval Office, Trump made it clear that the policy is part of a broader effort to strengthen U.S. manufacturing and reduce reliance on overseas chip production. “We’re going to be putting a very large tariff on chips and semiconductors,” Trump said. “But the good news for companies like Apple is if you’re building in the United States or have committed—without question—to build in the United States, there will be no charge.”
While the announcement signals a significant policy shift, details about the implementation of the tariff remain vague. It is not yet clear how the government will define “committed” investment or what percentage of manufacturing must occur in the U.S. for a company to qualify for the exemption. Nonetheless, the message to the industry is unmistakable: bring production to American soil or face steep costs.
Tech Giants Respond with Massive U.S. Investment Pledges
Following Apple’s recent announcement that it will invest an additional $100 billion in the United States over the next four years, Trump made these comments. The internet giant has already committed $500 billion, and this contribution strengthens its plan to localise more of its supply chain and manufacturing facilities.
The semiconductor industry’s other big companies have also been working on expanding their operations in the United States. Taiwan Semiconductor Manufacturing Company (TSMC), the largest contract chipmaker in the world, has committed $165 billion to build and expand its facilities in the United States in the next four years.
GlobalFoundries, a key player in the chip manufacturing ecosystem, committed $16 billion in June to expand its fabrication plants in New York and Vermont. Similarly, Texas Instruments declared plans to invest $60 billion across seven U.S.-based semiconductor plants. The company supplies chips to high-profile clients such as Apple, Ford, Medtronic, Nvidia, and SpaceX.
According to the Semiconductor Industry Association, more than 130 semiconductor-related projects have been announced since 2020. These projects total over $600 billion in U.S. investments. Trump’s new tariff initiative is likely to speed up this trend, reshaping the global chip landscape and redefining the importance of domestic production in an era of increasing geopolitical and technological competition.
