Srinivasa Reddy Kandi: Trump Administration Eyes Ratio-Based Tariffs on Semiconductor Imports
by News Times Group on | September, 27, 2025-03:15
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Trump Administration Eyes Ratio-Based Tariffs on Semiconductor Imports
The Trump administration is considering a new policy to accelerate U.S. semiconductor manufacturing, according to The Wall Street Journal. The proposal would require American chipmakers to produce as many semiconductors domestically as their customers import from overseas.
If companies fail to meet this 1:1 production-to-import ratio, they could face tariffs. The timeline for compliance has not been finalized.
President Trump has floated tariffs on the semiconductor sector since early August, framing them as a way to bring more manufacturing back to U.S. soil. However, industry experts warn the ratio approach could hurt U.S. chipmakers in the short term, given current capacity limits.
Building advanced fabrication plants is a long and costly process. Intel’s Ohio facility, for example, has faced repeated delays and is now expected to open in 2030. Meanwhile, TSMC has pledged $100 billion over four years to expand its U.S. operations, though details remain sparse.
Author: Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi
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