President Donald Trump has proposed a 100% tariff on imported semiconductor chips.
However, he clarified that companies building or committed to build in the U.S. would be exempt: “There will be no charge.”
How Major Chipmakers Are Responding
| Company U.S. Investment Strategy & Market Reaction TSMC $165B pledged, including $65B in Phoenix and $100B announced in March Shares rose nearly 5% in Taiwan. Samsung Operates chip facilities in Texas; producing Apple image sensors in Austin, Shares up in South Korea. GlobalFoundries U.S.-headquartered; expanding domestic footprint with Apple partnership Shares surged nearly 10%. Apple $600B total U.S. investment after a fresh $100B pledge Stock closed 5.1% higher. |
Uncertainties & Industry Concerns:
- Tariff Scope: Unclear whether it applies to raw chips or end products like smartphones.
2. Eligibility Criteria: No formal guidelines on what qualifies as “committed to build.”
3. Supply Chain Impact: Non-U.S. manufacturers without major U.S. operations face strategic pressure.
Market Sentiment:
- Chip stocks rallied on hopes that U.S. investments will shield firms from tariffs.
2. Analysts suggest Trump’s move fits his “open high, negotiate down” strategy, possibly softening final rates.
(source cnbc.com)
—Agencies
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