"The administration is weighing a policy that would mandate U.S. semiconductor companies to manufacture the same number of chips in the U.S. as their customers import from overseas manufacturers, the Wall Street Journal reported, citing anonymous sources. Companies that don't comply with this 1:1 ratio will be subject to tariffs, the report said, though the timeline to achieve this ratio isn't clear."
"Such a ratio-based approach would be unusual if the administration wants to achieve its goal of bringing semiconductor manufacturing back stateside. It could eventually lead to more domestic semiconductor production, but it has the potential to hurt the U.S. chip industry until manufacturing ramps up to meet the immense demand. Getting domestic chip manufacturing plants off the ground is neither a small nor a fast endeavor."
The administration is considering a ratio-based policy that would require U.S. semiconductor companies to manufacture domestically the same number of chips as their customers import, with noncompliance subject to tariffs. The policy would impose a 1:1 domestic production requirement, though the timeline for meeting the ratio remains unclear. The approach could incentivize more onshore chip production but risks harming U.S. chipmakers until domestic manufacturing scales to meet demand. Building advanced semiconductor fabs is time-consuming and capital-intensive; Intel's Ohio plant has been delayed to 2030. Meanwhile, TSMC announced a $100 billion commitment over four years to support U.S. chip plant infrastructure.
Read at TechCrunch
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