The Trump administration is considering a new semiconductor policy that would mandate companies produce as many chips domestically as they import from overseas suppliers.
Under the proposed 1:1 production ratio system, semiconductor companies failing to maintain equal domestic and imported chip volumes would face tariffs on the deficit. The policy aims to reduce America’s dependence on foreign chip manufacturing while boosting domestic production capacity, according to a Wall Street Journal report citing sources familiar with the discussions.
But the requirement presents significant logistical hurdles for the tech industry. Companies would need to substantially reconfigure existing supply chains and dramatically scale up U.S. manufacturing operations, a process that typically takes years.
The proposed framework would let companies maintain current import levels without penalties if they commit to equivalent domestic production. For instance, a firm pledging to manufacture one million chips in the U.S. could continue importing that same quantity tariff-free until their U.S. facility becomes operational.
Several major semiconductor manufacturers are already investing heavily in American facilities. Taiwan Semiconductor Manufacturing, Micron Technology, GlobalFoundries, and Samsung Electronics have committed billions toward new U.S. production plants.
However, the policy could create particular challenges for players like Apple Inc. and Dell Technologies Inc., which rely on products containing chips sourced from multiple international suppliers. Apple has vowed to invest $600 billion into domestic manufacturing operations over the next four years.
Administration officials are reportedly considering a grace period to help companies transition to increased domestic manufacturing. However, specific implementation details and enforcement mechanisms remain under development.
The policy discussions coincide with an ongoing government trade investigation examining how semiconductor imports affect national security. New tariffs are expected following completion of that probe.
White House spokesperson Kush Desai emphasized the administration’s commitment to semiconductor independence while cautioning against speculation about unannounced policies.
“The United States cannot depend on foreign imports to meet our semiconductor needs, which are critical to national and economic security,” Desai said. “However, until the administration makes an official announcement, any reports regarding our policy development should be considered speculative.”
