Trump imposes 100% tariffs on chip imports

But Samsung, SK Hynix win exemptions

US President Donald Trump has announced new tariffs of 100% on imported semiconductors unless firms make "substantial commitments" to build production facilities in the United States.

"We're going to be putting a very large tariff on chips and semiconductors," Trump said in a briefing recorded by Bloomberg TV.

"But the good news for companies like Apple is that if you are building in the United States or have committed to build in the United States, there will be no charge."

The measure follows Apple's announcement earlier this week of a $100 billion investment in US manufacturing, accelerating its plan to reach $600 billion in US investments over the next four years.

Apple's new American Manufacturing Program (AMP) aims to relocate more of its supply chain and advanced manufacturing capabilities to US soil, incentivising other multinational corporations to follow suit.

The policy shift comes amid an ongoing Section 232 National Security Investigation into the impact of semiconductor and related equipment imports on US national security.

The investigation, launched in April 2025 by the Department of Commerce's Bureau of Industry and Security, has yet to publish its findings, but officials have voiced growing alarm over America's waning dominance in the sector.

Once led by Intel, the US semiconductor industry has lost ground to Nvidia's AI acceleration technologies. While both companies are US-listed, Nvidia relies heavily on Taiwan's TSMC for chip production.

Intel, under new CEO Lip-Bu Tan, has admitted the need to expand into higher-value system and software markets and is rumoured to be considering exiting chip fabrication entirely, a move that could leave the US more vulnerable. Rival AMD also remains dependent on TSMC manufacturing.

South Korea wins exemption for Samsung, SK Hynix

In a separate development, South Korea's Trade Minister Yeo Han-koo announced that Samsung Electronics and SK Hynix will be exempt from the 100% tariffs.

The exemption, confirmed by Reuters, reflects the strong bilateral ties under the US-Korea Free Trade Agreement.

Both companies dominate the global memory chip market and already have significant US expansion plans, including Samsung's large-scale plant in Texas.

The move ensures they maintain profitable access to the US market while avoiding punitive duties.

Industry analysts warn, however, that smaller players without exemptions could face financial strain, potentially accelerating market consolidation.

Trump's $300 billion TSMC claim raises eyebrows

In an unexpected twist, Trump told CNBC that Taiwan Semiconductor Manufacturing Company (TSMC) is "coming over and spending $300 billion in Arizona, building the biggest plant in the world for chips and semiconductors."

The claim surprised observers, as TSMC's most recent filings put its US investment at $165 billion, already a significant jump from its original $12 billion plan.

TSMC's Arizona complex now includes six wafer fabs, two advanced packaging facilities, and an R&D centre.

The first fab has been producing 4nm chips since late last year, but there are no signs that TSMC plans to produce 3nm chips outside Taiwan.

TSMC declined to comment on Trump's statement and on a separate report from Taiwan's mnews[.]tw that claimed the US president had requested sweeping concessions, including an additional $400 billion US investment and the purchase of a 49% stake in Intel, in exchange for reduced tariffs on Taiwanese exports.

Taiwanese exports are currently facing a 20% tariff starting Thursday, down from the originally planned 32%, but higher than the 15% rates negotiated by Japan and the EU.

Chip imports will be subject to a separate sector-specific tariff scheme, which Trump says will be unveiled "within the next week or so.