The US government under President Donald Trump is planning a new approach to semiconductor tariffs that could shield major American technology companies from higher costs, while putting greater pressure on global chipmakers, especially Taiwan Semiconductor Manufacturing Company (TSMC).
According to media reports, the proposed plan would exempt Big Tech firms such as Amazon, Google and Microsoft from fresh tariffs on imported chips used in artificial intelligence (AI) data centres. These companies are investing billions of dollars in AI infrastructure, and higher chip prices could slow the expansion of cloud computing and AI services in the US.
The idea behind the carve-out is to protect America’s AI ambitions while still using tariffs as a tool to strengthen domestic manufacturing. Advanced chips are essential for AI systems, and most of these are currently produced outside the US, mainly by TSMC in Taiwan.
At the same time, the tariff strategy is expected to increase pressure on TSMC to speed up its shift of manufacturing to the US. TSMC has already committed around $165 billion to build and expand chip factories in Arizona. Under the proposed framework, tariff relief for US tech firms would be linked to how much chip production TSMC moves to American soil.
In simple terms, the more chips TSMC makes in the US, the more flexibility it may have to help its US customers avoid tariffs. This approach allows Washington to push for local manufacturing without directly harming its own technology giants.
However, the plan is still under discussion and has not yet been formally approved by President Trump. Details on how exemptions would work, how long they would last, and whether smaller tech companies would benefit remain unclear.
Industry experts say the policy reflects a balancing act. The US wants to reduce its dependence on overseas chip supply chains and boost national security, but it also wants to ensure that American tech leaders remain globally competitive in AI.
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