US President Donald Trump has expressed his intent to place an 100 per cent tariff on chip imports, but companies making or planning to make chips in America would be exempt.
Bloomberg noted President Trump clarified the broad initial threat, saying if a company is building in the US or had committed to, “there will be no charge”.
The president did not provide details on how much local manufacturing is required to qualify for an exemption.
Apple will be exempt after agreeing to invest another $100 billion to increase manufacturing in the US, as will the many chipmakers recently investing in domestic production.
South Korea’s trade envoy Yeo Han-koo told Reuters Samsung Electronics and SK Hynix would not be subject to the proposed 100 per cent tariffs.
Samsung earmarked more than $40 billion to expand its chip manufacturing capabilities in the US state of Texas with government support of $4.6 billion, while SK Hynix scored $950 million in subsidies and loans for an AI silicon facility which adds to a planned investment of $3.8 billion in the state of Indiana.
Taiwan Semiconductor Manufacturing Company, a contract chipmaker and major supplier for Apple and Nvidia, also invested heavily in the US and would also be exempt.
Smaller Japanese chipmakers including Renesas Electronics and Sony’s chip unit would likely be subject to any hike in duties.
QF Research suggested on a post on X the likely outcome would be set semiconductor tariffs, possibly with grace periods, “but nothing close to 100 per cent for critical components and countries”.
Source: Mobile World Live
Image Credit: Stock Image