U.S. Chip Tariff Countdown: Rates Up to 100%?

According to reports, U.S. President Donald Trump is expected to announce new tariffs on imported semiconductor chips as early as this week, with rates projected to range between 25% and 100%. Industry experts warn that this move could have profound implications for global chipmakers, particularly those based in Taiwan, as the proposed policy may impose tariffs based on the origin of wafer fabrication.

Semiconductor manufacturers are closely monitoring the situation, as the potential shift to a wafer-origin-based tariff model could significantly disrupt established production and supply strategies. Taiwan's semiconductor sector, long regarded as a critical part of the global "silicon shield," may see its strategic advantage diminished if the tariffs are implemented.

Industry sources point out that high tariff rates could prompt U.S.-based companies to seek alternatives in countries such as South Korea or Japan, or accelerate domestic chip development within mainland China. Additionally, growing U.S. reliance on Taiwan-based foundries amid rising geopolitical tensions could drive Washington to intensify its "Made in America" agenda. However, such policies may risk triggering retaliatory actions, further complicating the already fragile global semiconductor supply chain.

Recent earnings calls from Taiwanese IC design companies indicated that the reciprocal tariffs introduced in early April have not yet led to major order changes, with customers largely maintaining a wait-and-see approach. Nevertheless, companies warn that imposing tariffs based on wafer manufacturing location could substantially increase the cost of importing critical components into the U.S., particularly for American chip firms that rely on Asia-based fabrication.

If the policy proceeds as speculated—focusing on the location of wafer output—some production may shift back to the U.S. However, this reorganization could lead to longer procurement cycles and delayed shipments, affecting profitability and diminishing the global competitiveness of American chipmakers.

Industry leaders also emphasized that while the semiconductor sector operates at the upstream level, cost increases from chip tariffs may be passed down the supply chain. Given that most tech products integrate multiple chips, broad cost transfers could result in significant end-product price hikes. As a result, Taiwan's semiconductor companies are increasingly shifting their attention from fluctuating U.S. policy moves to assessing the broader impact on end-user demand.