Trump says he’ll announce semiconductor and chip tariffs

In a significant development for the semiconductor sector, President Donald Trump announced plans to introduce tariffs on semiconductors and chips during an appearance on CNBC’s Squawk Box this past Tuesday. The specifics regarding the tariffs are still under wraps, but their potential impact could be substantial for U.S. hardware and AI firms. The landscape of chip manufacturing in the U.S. has been a focal point since the signing of the CHIPs and Science Act in 2022, which allocated $52 billion to bolster domestic chip production. At that time, the United States produced approximately 10% of the world’s semiconductor supply, despite being home to more than half of the global semiconductor companies. Some progress has been made in enhancing domestic chip manufacturing capabilities, with major players like Intel and Taiwan Semiconductor Manufacturing Company (TSMC) receiving financial support from the CHIPs Act. TSMC has pledged to invest a minimum of $100 billion over the next four years in U.S. chip manufacturing plants. However, building these facilities is a lengthy process, as evidenced by Intel's recent announcement to postpone construction of its facility in Ohio, illustrating the hurdles involved in rapidly increasing production. The timing of the tariff announcement coincides with the semiconductor industry’s anticipation of the administration's decisions regarding AI chip export restrictions. Earlier in May, the Trump administration repealed the Biden administration's export rules that regulated the sale of advanced semiconductors used in AI applications. These prior regulations were designed with national security in mind, employing a tiered approach based on specific countries. In July, the Trump administration introduced its AI Action Plan, which underscored the necessity for the U.S. to establish chip export restrictions, although details remained vague. Reports from Semafor, citing industry insiders, suggest that there is ongoing deliberation within the Trump administration about whether to proceed with rescinding and replacing the Biden-era AI export regulations. As the semiconductor industry navigates this tumultuous year, a timeline of market developments for 2025 has been compiled to keep track of the evolving situation.