US President Donald Trump has announced a 100% tariff on semiconductors from companies that do not invest in the United States, sending shockwaves through Asian chip markets recently.
Unveiled at the White House, the levy will be part of a broader package of sweeping tariffs on goods from dozens of countries, with chips so far having been spared. Trump framed the move as part of Washington’s race with Beijing to dominate high-end semiconductor production, crucial for powering artificial intelligence systems.
“If you’re building in the United States, there’s no charge,” Trump said, without specifying when the tariff would take effect.
Industry experts warn the policy could reshape the global semiconductor landscape. Arisa Liu of the Taiwan Institute of Economic Research noted it could influence the “strategic direction of global semiconductor companies,” especially given America’s dominance in AI and high-performance computing.
While the highest-end chips will be exempt, Natixis Asia Pacific chief economist Alicia Garcia-Herrero cautioned the policy would “kill producers of low-end chips,” notably in Malaysia and China. Taiwan Semiconductor Manufacturing Co. (TSMC) shares jumped nearly 5% after officials confirmed the world’s largest contract chipmaker—supplying giants like Nvidia and Apple—would not be affected. Taiwan remains the undisputed leader in semiconductor manufacturing, producing over half of the world’s chips and nearly all high-end variants.
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