US Considering New Moves to Strengthen Domestic Chip Production

The US government is considering requiring companies to produce the same number of chips domestically as their customers import into the country or face high tariffs. The move could add more uncertainty for global chipmakers.

Commerce Secretary Howard Lutnick held talks with executives from chipmakers to discuss the potential move. The measure aims to boost domestic manufacturing and reduce the country’s heavy reliance on imported chips.

In early August, President Donald Trump warned chipmakers operating in the US that the government would levy 100% tariffs on imports if they didn’t move production to the US. He reiterated the threat last month.

Taiwan Semiconductor Manufacturing Company, the largest contract chipmaker in the world and a major supplier to Apple and Nvidia, has committed to investing $65 billion to build three fabrication facilities in the state of Arizona. But even after those plants are online, the total output will represent a fraction of its global production.