The Wall Street Journal reported that the Trump Administration is considering a new plan to reduce U.S. dependance on imported semiconductors by mandating a 1:1 ratio of domestically manufactured to imported semiconductors under which companies failing to meet the 1:1 domestic-to-overseas chip manufacturing ratio would face tariffs. Under this plan, if a company pledged to build one million chips in the U.S., it would essentially be credited with that amount over time so the company and its customers could import until its plant was completed without paying tariffs. There would be a discretionary exemption process through which the Administration could grant relief at the start of the process to give companies time to adjust and increase U.S. capacity. Under the proposed system, companies would potentially have to keep track of where all their semiconductor chips are made and work with chip makers to match the number of U.S. and overseas products over time. Industry experts say the plan would benefit companies increasing U.S. production such as TSMC, Micron Technology and GlobalFoundries, which would get more leverage in discussions with customers. SWACCA strongly supported enactment of the “CHIPS and Science Act” in 2022, which provided billions of dollars to support domestic semiconductor manufacturing to incentivize the construction of manufacturing facilities in the U.S.
