The Trump administration is considering a new policy that would require chip companies to maintain a '1:1' ratio between their production volume in the United States and their overseas imports. Companies failing to meet this requirement would be subject to tariffs.
The Trump administration is weighing a new plan aimed at significantly reducing the United States' reliance on overseas-manufactured semiconductors, with the goal of stimulating domestic manufacturing and reshaping global supply chains.
The policy aims to require semiconductor companies to produce in the U.S. an amount equal to what their clients import from foreign manufacturers. Companies failing to maintain this '1:1' ratio over the long term will be forced to pay tariffs, according to sources familiar with the matter.
This plan stems from statements made by Trump last month, when he indicated that tech companies could avoid up to 100% tariffs on semiconductors if they invested more in the U.S. Aligning domestic capacity with import levels poses greater challenges than simply increasing investment in the U.S., as overseas products are often cheaper, supply chains are difficult to adjust, and boosting U.S. production takes time, insiders noted.
If implemented, this plan could further complicate an already intricate tariff system.
According to sources familiar with the discussions, U.S. Commerce Secretary Lutnick has engaged with semiconductor industry executives on this concept, informing them it may be driven by economic security concerns. Government officials have long worried about U.S. tech companies' heavy reliance on foreign chips.
Tech executives are particularly concerned because chips are ubiquitous in the modern economy, from smartphones to automobiles. Many companies send U.S.-made chips overseas for assembly into tech products before these items return to the U.S. as complete units or components. This makes tariff enforcement highly challenging. It remains unclear how tariffs would be calculated for products containing chips, and the plan could still be adjusted.
White House spokesperson Kush Desai stated, 'The United States cannot depend on foreign imports to meet our semiconductor needs, which are critical to national and economic security. However, until the administration makes an official announcement, any reports regarding our policy development should be considered speculative.'
Under the proposed system, if a company commits to producing one million chips in the U.S., its customers can continue importing that quantity without tariffs until the factory is operational. An initial grace period may be granted to allow businesses time to adapt and gradually increase U.S. production capacity, according to informed sources.
This process will affect$Apple (AAPL.US)$、$Dell Technologies (DELL.US)$This poses a challenge for large technology companies, whose imported products often contain different chips sourced from around the world. Under the new system, these companies may have to track the origin of each chip and collaborate with chip manufacturers to ensure a long-term balance between domestic and overseas sourcing.
The plan may benefit some companies that increase production in the U.S., such as$Taiwan Semiconductor (TSM.US)$、$Micron Technology (MU.US)$and$GlobalFoundries (GFS.US)$They will gain more leverage in negotiations with clients.
The waiver process will also test the relationship between Trump and tech executives, who have pledged to invest hundreds of billions of additional dollars in the U.S. to gain Trump's approval. Last month, Trump praised Apple CEO Tim Cook for increasing investment in the U.S., after previously criticizing Cook for continuing to manufacture iPhones overseas. However, both Apple and industry analysts have stated that producing iPhones in the U.S. is not feasible.
Currently, the government is conducting a trade investigation into how chip imports affect national security, with new tariff measures expected to be announced after the investigation concludes.
The U.S. has already provided manufacturers with billions of dollars in grants and other subsidies through the 2022 Chips Act, but some companies still complain that their customers are unwilling to pay higher prices for U.S.-made products because overseas alternatives are cheaper.
The new plan will become one of the key measures by the Trump administration to address this issue, using the threat of tariffs to pressure companies into purchasing more American-made chips.
However, the specific implementation approach may face obstacles, especially for certain highly advanced or specialized products that cannot be easily produced in the U.S.
Editor/Jeffy
