In a new effort to increase chip manufacturing within the United States, the Trump administration is said to be exploring a system that would impose tariffs on domestic producers who fail to meet certain chip output targets.
According to The Wall Street Journal, which referenced unnamed sources, officials are considering a rule that would require American semiconductor firms to manufacture as many chips domestically as their clients purchase from foreign suppliers.
The report notes that companies failing to meet this one-to-one production ratio would face tariffs, although it remains unclear when this requirement would take effect.
President Donald Trump has been discussing the possibility of tariffs on the chip sector since early August.
If implemented, this ratio-based policy would be an unconventional way to encourage the return of chip manufacturing to the U.S. While it might eventually boost domestic output, it could also negatively impact the American semiconductor sector until production capacity can catch up with demand.
Establishing new chip fabrication facilities in the U.S. is a complex and lengthy process. For example, Intel’s planned Ohio plant, which was initially expected to open this year, has experienced several delays and is now aiming for a 2030 launch.
At the same time, Taiwan Semiconductor Manufacturing Company (TSMC) announced in March that it intends to invest $100 billion over the next four years to develop infrastructure for U.S. chip plants, though specific plans have not been fully disclosed.
