"Since then, sources familiar with the investigation told Reuters that "the Trump administration is considering imposing tariffs on foreign electronic devices based on the number of chips in each one." Under that potential plan, the tariff charged would be "equal to a percentage of the estimated value of the product's chip content," sources suggested. Some expect that companies like the Taiwan Semiconductor Manufacturing Company (TSMC) may be exempted from these tariffs, based on a pledge to invest $100 billion into US chip manufacturing."
"However, sources told Reuters that the Commerce Department has weighed offering "a dollar-for-dollar exemption based on investment in US-based manufacturing only if a company moves half its production to the US." TSMC's total market value is more than $1 trillion, so the US may seek more investments if the campaign to move half of Taiwan's chip production into the US fails."
Trump proposed chip tariffs up to 100 percent and offered exemptions for tech companies that commit to significantly expanding US manufacturing. The administration is considering tariffs on foreign electronic devices scaled to the number or estimated value of chips in each product. Exemptions may be tied to investments in US fabrication, potentially as dollar-for-dollar credits only if a company relocates half its production to the United States. Large firms such as TSMC have pledged major US investments but could face higher demands given market size. Proposed 1:1 credit rules would require rigorous chip-by-chip tracking and create compliance challenges for manufacturers.
Read at Ars Technica
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