US tariff plan ties semiconductor rates to investment levels

The US is proposing tariffs on semiconductor components to pressure foreign chipmakers into expanding US production, with the Commerce Department considering linking tariff rates to investment levels. This initiative may extend beyond chips to products containing semiconductors, including laptops, gaming consoles, and data center servers. TSMC may benefit from this approach due to its $265 billion US investment pledge, potentially securing favorable terms. The Commerce Department expects Taiwan to announce additional US investments of $20-30 billion next week. An existing memorandum allows tariff exemptions for Taiwanese companies investing in US manufacturing, with duty-free import quotas tied to planned US capacity. Samsung Electronics and SK hynix could face greater pressure, as the US insists on domestic DRAM and NAND production. Both have existing US investments, but it remains unclear if these will reduce tariffs on chips made in South Korea. Relocating most memory production faces practical difficulties, as even Micron, the only major US memory chipmaker, has more overseas plants than domestic ones.