The measure aims to reduce dependence on overseas chip supply and bolster economic security
In sum – what to know:
Proposed 1:1 production rule – Chipmakers would need to match imports with U.S. production or face tariffs, with exemptions for pledged domestic capacity under construction.
Policy rooted in security concerns – White House officials frame the plan as reducing reliance on overseas suppliers for critical technology.
Implementation faces hurdles – Analysts warn the rule would be difficult to enforce and could favor firms already operating U.S. fabs.
The U.S. government is weighing a policy that would require chipmakers to produce domestically the same volume of semiconductors their customers currently import, or face tariffs, the Wall Street Journal reported.
The measure, discussed by Commerce Secretary Howard Lutnick with semiconductor executives, aims to reduce dependence on overseas supply and bolster economic security, according to the report. Under the plan, companies pledging new U.S. production would receive credit for that capacity, allowing tariff-free imports until their domestic fabs are operational, it added.
President Donald Trump has tied the proposal to national security concerns, warning that reliance on foreign providers poses risks. “America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security,” White House spokesperson Kush Desai said, while noting that policy details remain unconfirmed.
Analysts said that the implementation of this regulation would be complex and could take years. John Belton, portfolio manager at Gabelli Funds, suggested the measure could primarily benefit chipmakers with existing U.S. fabs, such as Intel and GlobalFoundries, according to the report.
Trump’s broader push for reshoring has already driven both U.S. and foreign firms to commit hundreds of billions of dollars to domestic semiconductor plants.
In August international press reports stated that the Trump administration was expected to begin taking payments of 15% of the revenues that chip companies Nvidia and Advanced Micro Devices (AMD) generate from artificial intelligence chip sales to China, in exchange for allowing the companies to sell their chip wares to the Chinese market.
