How Donald Trump’s 100% US tariff plan on semiconductors could impact phone, chip-makers

By Admin

07 Aug, 2025

In a move that could reshape the global semiconductor landscape, former US President Donald Trump announced plans to impose a 100% tariff on semiconductors imported from countries not producing chips in the United States or committed to doing so. While the announcement wasn’t a formal policy rollout, it sent immediate ripples across global markets and raised major questions about the future of the tech industry’s supply chain.

A Push for Onshore Chip Production

Trump made the announcement from the Oval Office, where he was joined by Apple CEO Tim Cook, who unveiled a massive new investment: Apple will inject an additional $100 billion into its US operations. This brings Apple’s total commitment to $600 billion in domestic investments, including the creation of 20,000 jobs over the next four years. The timing suggests a strategic effort by Apple to avoid future tariff exposure by strengthening its US footprint.

The tariff, Trump clarified, would not apply to companies already manufacturing in the US or planning to set up operations. While still vague in its implementation and scope, the message was clear   the US aims to reduce dependence on foreign semiconductor supply chains.

Who Could Be Affected?

The impact of such a tariff could be dramatic   especially for companies without US manufacturing plans. However, many major chipmakers have already taken steps to establish or expand their presence in the US:

• Taiwan Semiconductor Manufacturing Co. (TSMC)
  
  

• Samsung Electronics Co.
  
  

• Texas Instruments Inc.
  
  

• Micron Technology Inc.
  
  

• GlobalFoundries Inc.
  
  

These companies have pledged billions of dollars toward US expansion, aligning themselves with the Biden and Trump administrations’ push for semiconductor independence.

Intel Corp., despite recent financial struggles, still maintains chip-making operations across Oregon, New Mexico, and Arizona, further securing its position.

However, many high-profile players   like Nvidia Corp. and Advanced Micro Devices Inc. (AMD)   rely heavily on outsourcing to fabs like TSMC. Nvidia has shown support for domestic manufacturing by sourcing from TSMC’s new Phoenix facility and pledging US investments, but as Bloomberg noted, there still isn’t enough advanced production outside East Asia to meet global demand.

South Korea Scores Favorable Terms

In a key development, South Korea’s trade envoy Yeo Han-koo announced that Samsung Electronics and SK Hynix will not be subject to the 100% tariff. Thanks to a favorable trade agreement between Seoul and Washington, South Korea appears poised to retain an advantageous position in semiconductor trade with the US.

Market Reaction: Stocks Tumble

The global markets were quick to respond. In early Asian trading following the announcement:

• Tokyo Electron dropped 3.4%
  
  

• Renesas Electronics slid 2.5%
  
  

• SK Hynix fell 2.9%
  
  

• Investors awaited TSMC’s opening in Taipei amid fears of ripple effects
  
  

The semiconductor industry, already strained by geopolitical tensions and post-pandemic supply issues, now faces further uncertainty.

Final Thoughts

While Trump's remarks may not yet constitute formal policy, they reflect a growing bipartisan consensus in the US: semiconductor self-reliance is now a strategic priority. Companies that have invested in American soil may enjoy a smoother ride, while others could face significant hurdles if such tariffs become law.

As the global chip war intensifies, tech giants   from Apple to Nvidia   must navigate an increasingly complex landscape that merges technology with geopolitics. And for countries like South Korea, early alignment with US interests may prove to be a long-term strategic win.