Trump Says He’ll Announce Semiconductor and Chip Tariffs
The semiconductor industry continues its volatile year with a significant development, as President Donald Trump announced his administration’s plans to unveil tariffs on semiconductors and chips as soon as next week. While speaking on CNBC’s Squawk Box, Trump indicated the upcoming announcement, though the specific details of these proposed tariffs remain undisclosed.
Such tariffs could introduce considerable disruption for U.S. hardware and Artificial Intelligence (AI) companies. This news comes after the U.S. CHIPs and Science Act was signed into law in 2022, providing $52 billion in subsidies aimed at bolstering domestic chip manufacturing. At the time of the Act’s signing, the U.S. produced approximately 10% of global chips. Despite this relatively small manufacturing footprint, more than half of the world’s semiconductor companies are headquartered in the United States.
Since 2022, efforts have been underway to increase domestic chip production. Both Intel and Taiwan Semiconductor Manufacturing Company (TSMC) have secured funding from the CHIPs Act. TSMC, in particular, has committed to investing “at least” $100 billion over the next four years in chip manufacturing facilities within the U.S. However, establishing such manufacturing plants is a time-intensive process. Recent reports highlight this challenge, with Intel announcing delays in the construction of its Ohio chip manufacturing facility, underscoring the complexities of rapidly scaling up production.
The impending tariff announcement also occurs as the industry awaits the administration’s decisions regarding AI chip export restrictions. These rules are designed to govern which countries can acquire advanced semiconductors essential for AI systems. The Trump administration officially rescinded the Biden administration’s earlier chip AI export rules in May. These initial rules had established a tiered, country-specific approach to restrict chip exports based on national security considerations. Subsequently, the Trump administration released its AI Action Plan in July, which emphasized the necessity for the U.S. to implement chip export restrictions, although it provided limited specifics on implementation.
Adding to the evolving policy landscape, reporting from Semafor, citing industry sources, suggests that the Trump administration is currently debating whether to proceed with its plan to rescind and replace the Biden-era AI export rules. For a comprehensive overview of the semiconductor industry’s recent market movements throughout 2025, a regularly updated timeline is available.
