The semiconductor industry’s turbulent year continues as the Trump administration signals plans to impose new tariffs on chips. Speaking on CNBC’s Squawk Box Tuesday, President Donald Trump revealed that his administration could announce tariffs on semiconductors and chips as early as next week, though the specifics of the policy remain unclear.
If implemented, the tariffs could pose a significant disruption to U.S.-based hardware and AI companies, many of which rely on international semiconductor supply chains. The news comes amid growing efforts to reduce U.S. dependence on foreign chip manufacturing.
Since the CHIPs and Science Act passed in 2022, injecting $52 billion into domestic semiconductor production, the U.S. has made strides in building chip plants. Major players like Intel and TSMC have received government funding, with TSMC pledging to invest at least $100 billion in U.S. chip facilities over the next four years.
Despite this progress, chip manufacturing is a long game. Intel recently delayed construction of its new Ohio-based chip plant, highlighting how ramping up production remains a slow and costly process.
The proposed tariffs come as the industry awaits clarity on AI chip export restrictions. The Trump administration revoked the Biden-era AI chip export rules in May, which had established a tiered, country-specific framework tied to national security concerns. In July, Trump introduced an AI Action Plan calling for new export restrictions, but the policy lacks clear details.
Related: Former U.S. Officials Push To Block Nvidia’s AI Chip Sales To China.
According to reporting from Semafor, internal debates are ongoing within the administration about whether to fully scrap or revise Biden’s approach to AI chip controls.
As the U.S. government toggles between industrial policy and national security strategy, the semiconductor sector faces mounting uncertainty. For a deeper dive into the developments shaping the chip market in 2025, explore our up-to-date semiconductor industry timeline.
