US Imposes 100 % Tariff on Imported Chips, Offering Exemptions to Domestic Manufacturers
The sweeping trade move underscores Washington’s determination to rebuild semiconductor self-reliance, rewarding firms investing in US production while heightening pressure on global chipmakers reliant on export markets.
The United States has declared a sweeping tariff policy envisaging a 100 % duty on imported semiconductor chips, with exemptions available for companies manufacturing or committing to manufacture within U.S. borders.
The announcement reflects broader efforts to revitalise domestic chip production and reduce dependence on foreign fabrication. Firms that demonstrate genuine U.S. production commitments will qualify for exclusion; failure to fulfil pledges may trigger retroactive tariff application.
The directive, though not yet formalised into legal statute, has elicited a strong industry reaction. South Korea’s trade representatives have suggested that firms like Samsung Electronics and SK Hynix will likely be shielded under existing U.S.–South Korea frameworks. Meanwhile, smaller export-driven economies such as the Philippines and Malaysia have voiced deep concern over competitive disruption.
Taiwan’s TSMC is expected to avoid major impact given its significant U.S. manufacturing footprint. Analysts note the policy creates a binary field: large, well-capitalised companies with U.S. operations will gain a strategic advantage (“survival of the biggest”), while smaller players could face escalating tariff risks.
With the U.S. semiconductor manufacturing share down to roughly 12 % of the global total—compared to about 40 % in 1990—the move signals an aggressive shift in industrial policy and national-security strategy for technology supply-chains.
