US President Donald Trump said he will impose tariffs on semiconductors in the coming weeks.
When asked about the tariff percentage, Trump said:
He added: “When they come to the US and they have their plants and factories here, there are no customs duties.”
On average, it takes about 3-4 years to build a new chip fab. Additionally, a 2023 report from the Semiconductor Industry Association estimated that due to increased production in the US by 2030, approximately 58% of new jobs where semiconductor manufacturing and design risks are not being filled. I’m doing it.
In January 2025, Trump announced that he would “return” production to the United States by imposing a “100% tax” on overseas production and a “100% tax” on computer chips and semiconductors. Pledged, he insisted that tariffs would encourage businesses to manufacture chips in the US instead of Taiwan.
Customs duties are paid by the importer, not by the exporter.
In his January speech, Trump told House Republicans that tariffs will serve as an incentive because “(tip companies) don’t want to pay 25, 50 or 100 percent taxes,” the US said. The government added that it was not the case. The companies “we need to fund them under tips and science, as they intend to build factories with their own money. We don’t need to give them money.”
Earlier this month, Trump announced it was preparing to announce a 25% tariff on all steel and aluminum imports. As with the data center sector, steel is a critical material used in multiple applications within the construction process, so tariffs can affect chip companies’ ability to build manufacturing plants in the US .
Historically, aluminum has been an important part of semiconductor manufacturing and has been the most common material for chip metal interconnects for many years, but copper interconnects have been recommended.
This week, US chip company Intel reported that it was facing a split. Broadcom and TSMC are considering plans to acquire Chipmaker’s design business and factory respectively.
Originally, it was reported that the Trump administration raised the idea that TSMC would take control of Intel’s Fab, but President Trump could then approve foreign companies operating Intel’s US factories. claimed it was low.