[News] U.S. Reportedly Weighs 1:1 Rule on Domestic vs. Imported Chips, Favoring TSMC, GF and Micron

After a wave of tech giants pledged additional U.S. investments during President Trump’s new term to sidestep high chip tariffs, Washington is reportedly considering another policy. According to The Wall Street Journal, companies that fail to maintain a 1:1 ratio of domestic production to imports over time could face hefty tariffs.

Notably, The Wall Street Journal suggests the proposal could benefit those expanding U.S. production, such as TSMC, Micron, and GlobalFoundries, giving them greater bargaining power with customers and potentially boosting their market influence.

Conversely, major tech players like Apple and Dell, which import products containing chips from multiple sources, could face challenges, needing to track chip origins and coordinate closely with suppliers, the report says.

As Bloomberg reported in August, with the Section 232 investigation nearing completion, President Trump signaled that new tariffs on steel, semiconductors, and potentially pharmaceuticals could be looming. The high-tech sector may face disruption, as he reportedly floated semiconductor tariffs of up to 300%.

Now, as per The Wall Street Journal, Commerce Secretary Howard Lutnick has reportedly discussed the new proposal on domestic production ratios with semiconductor leaders, citing U.S. economic security concerns. Many companies send U.S.-made chips overseas for assembly into final products, which are later re-imported—making tariff enforcement tricky.

In detail, the report explains that under the proposed plan, a company that commits to producing one million chips in the U.S. would essentially earn credit for that amount over time, allowing it and its customers to continue importing chips until the facility is operational—without facing tariffs. Early-stage relief could also give companies breathing room to ramp up domestic production, sources told The Wall Street Journal.

On the other hand, attention is also focused on how the latest move could affect South Korea’s major tech companies like Samsung, as trade tensions between the two nations continue. As per the South China Morning Post, South Korea is digging in as talks stall over the U.S. demand for a staggering $350 billion in direct investment—a condition critics warn could push Seoul toward a financial crisis.

Read more

• [News] Trump’s 100% Chip Tariff Impact: TSMC, GlobalWafers Protected While UMC & Others at Risk
• [News] U.S. Slaps 20% Tariff on Taiwan: Foundries Unscathed, Downstream Burned—Section 232 Looms

(Photo credit: The White House’s X)