Despite the risk of higher costs, US semiconductor firms back Trump’s 25% tariff on AI chips. Global supply chains and investments may be impacted as trade talks continue.
US semiconductor companies have offered measured backing to the Trump administration’s decision to levy a 25% tariff on selected advanced chips, even as the move raises costs amid ongoing trade talks.
The tariff, which took effect on 15 January, applies to high-end artificial intelligence (AI) processors such as NVIDIA’s H200 and AMD’s MI325X. The White House said the measure would not cover materials imported to expand domestic semiconductor manufacturing and supply chains. President Donald Trump has also signalled that broader tariffs on chips and chip-containing products could follow.
Public responses from chipmakers have been limited. According to a report by the Manufacturing Dive, most US and international companies contacted for comment declined to respond.
NVIDIA, however, welcomed the policy, saying it supports high-value manufacturing and employment in the US. The company said allowing sales of approved AI chips to vetted customers struck a careful balance aligned with national interests.
Taiwan Semiconductor Manufacturing Company (TSMC) and Intel declined to comment directly. Their silence followed a separate agreement under which the US government and Taiwan, including TSMC, committed to $250 billion of semiconductor investment in the US in exchange for lower tariffs. The US government also holds a 10% stake in Intel, recently highlighted by Trump.
TSMC’s finance chief said the company would continue expanding in the US to meet customer demand. However, its most advanced technologies would remain based in Taiwan.
Industry body SEMI broadly supported efforts to strengthen domestic chip production. It urged close coordination with industry to avoid unintended consequences for global supply chains. SEMI noted that many parts of the semiconductor ecosystem cannot be relocated quickly.
Despite billions of dollars in investment in new US fabrication plants, the country remains heavily dependent on overseas suppliers. The US consumes roughly a quarter of global chip output but produces only about 10% of what it uses.
Analysts warned that tariffs could raise prices until new factories come online. Building advanced chip plants requires vast capital and time. The uncertainty, they said, complicates planning and risks slowing investment across the electronics sector.
