This proposed policy strikes me as a nightmare to track and enforce. The administration seems to believe that chips are like appliances.
Trump admin targets 1:1 ratio of domestic to imported chips - report
Sep. 26, 2025 1:32 AM ET
seekingalpha.com
The Trump administration is planning a new policy that would require semiconductor companies to manufacture the same number of chips in the U.S. as their customers import from overseas producers, aiming for a 1:1 domestic-to-imported chips ratio, the Wall Street Journal reported.
The companies that do not maintain this 1:1 production ratio over time would face tariffs on the shortfall, the report added, citing sources familiar with the matter.
Aligning domestic capacity with import levels presents severe challenges, including supply networks that are difficult to modify and increasing U.S. production, which is expected to take a while.
Under the proposed system, if a company commits to producing one million chips in the U.S., its customers can continue importing that quantity without tariffs until the factory is operational.
Major players such as Taiwan Semiconductor Manufacturing (NYSE: TSM), Micron Technology ( MU), GlobalFoundries ( GFS), and Samsung Electronics ( OTCPK:SSNLF) are already building multibillion-dollar U.S. facilities. However, such regulation will pose a challenge to companies like Apple ( AAPL) and Dell Technologies ( DELL) that import products containing chips sourced from around the world.
There may be a grace period to allow companies to adjust and ramp up U.S. manufacturing capacity, though policy specifics and enforcement mechanisms remain under discussion.
Currently, the government is undertaking a trade inquiry into how chip imports damage national security, with new tariffs set to be announced after the probe is completed.
“The United States cannot depend on foreign imports to meet our semiconductor needs, which are critical to national and economic security. However, until the administration makes an official announcement, any reports regarding our policy development should be considered speculative,” said White House spokesperson Kush Desai. |
