Trump eyes 100% chip tariff as Apple plans expansion

Step into the future: Trump's bold tariff move propels Apple to triple down on U.S. manufacturing.

In a high-stakes policy moment, President Trump announced his plans for a sweeping 100% tariff on imported chips, offering relief only to companies that commit to building in the U.S. The decision has prompted Apple to expand its domestic investment to $600 billion through its ambitious new American Manufacturing Program (AMP).

However, simply investing in the U.S. doesn’t guarantee chip prices will remain unaffected. TSMC, which already has investments and operations in the U.S., plans to raise prices on its Arizona-produced chips by 30% because of capacity constraints, demand, labor costs, and even existing tariffs.  

As other firms weigh their responses, Trump’s 100% chip tariff proposal is now a defining pressure point for the industry.  

Trump’s 100% chip tariff proposal

In what is now his most aggressive bid to relocate critical technology production to the U.S., President Trump recently announced a 100% tariff on imported semiconductors. The policy imposes sweeping levies on all chips with one major caveat—companies manufacturing in America or who have formally committed to doing so are exempt.  

For multinational chipmakers already pursuing U.S.-based projects, the announcement is mostly inconsequential. However, smaller firms in countries like Malaysia and the Philippines claim the move is a death knell for their current business models.  

In 2024, the U.S. produced just 12% of the world’s semiconductors, a steep fall from the 40% dominance it enjoyed in the 1990s. The proposed tariff builds on the Trump administration’s earlier duty increments introduced over the past few months and is meant to incentivize investment in American chip manufacturing.  

Firms with meaningful U.S. operations, including TSMC, Samsung, SK Hynix, and certain EU and Japanese manufacturers, appear to be eligible for exemption. Washington has positioned these exceptions not as concessions, but as rewards for what the current administration is calling “economic loyalty.”  

Notably, Apple’s announcement of an additional $100 billion in U.S. investment under its AMP will shield it from the new tariff. The move also brings its total stateside commitment to $600 billion.  

The newfound strategic insulation of investing in the U.S. chip sector hasn’t been lost on investors. Within hours of President Trump’s tariff announcement, Apple, TSMC, and Samsung all saw sizeable stock gains as investors foresee retention or growth of U.S. market share with the new tariffs reshaping the dynamics of global chip buying.  

Martin Chorzempa, senior fellow at the Peterson Institute for International Economics, said in a statement to Reuters, “There’s so much serious investment in the United States in chip production that much of the sector will be exempt.”  

However, the implications are grim for firms reliant on low-cost imported semiconductors from lower-volume manufacturers in Southeast Asia. Unlike the titans producing chips at the bleeding edge of node technology in their capital-intensive U.S. fabs, these smaller players face diminished price competitiveness and shrinking margins.  

Industry stakeholders shouldn’t misinterpret Washington’s latest move as political noise. Rather, it is yet another signal of a major shift in global trade dynamics being driven by the U.S. government’s desire to re-localize chip manufacturing to the states.  

Sourceability can help organizations navigating this environment create more resilient supply chains and realign their sourcing strategies. Our data-driven procurement tools can identify suppliers and parts at greater risk of disruption due to tariffs and connect buyers with stable alternative sources using U.S.-based warehousing or global manufacturing redundancy.  

Apple’s $600 billion U.S. commitment  

As tariffs continue to shake up the industry, Apple has responded with a massive expansion of its domestic footprint. The tech titan recently announced the launch of its American Manufacturing Program. In doing so, Apple has increased its total U.S. investment to $600 billion in an assertive display of compliance and calculated risk mitigation.  

The AMP initiative is just as much an optics move as it is a strategic realignment of Apple’s global supply chain. It is a high-stakes effort to localize the company’s semiconductor and component sourcing within U.S. borders, positioning it to sidestep tariff exposure.  

Among Apple’s core objectives is building a vertically integrated, end-to-end chip supply chain on U.S. soil. This includes everything from domestic wafer production to final assembly to packaging. If the pivot pays off, it could serve as a blueprint for others looking to align with Washington’s increasingly territorial industrial policy.  

Apple’s manufacturing partners under AMP include some of the largest names in the semiconductor industry. Corning, TSMC, Broadcom, Applied Materials, GlobalWafers America, and GlobalFoundries—to name a few—will all play important roles.  

A flagship example is Corning’s new Kentucky facility, which will produce all glass used in iPhones and Apple Watches. Alongside this production is the launch of the Apple-Corning Innovation Center, a new R&D hub designed to push the boundaries of material science.

Across its many AMP ventures, Apple says it plans to create 20,000 new U.S. jobs, most of which will focus on silicon engineering, AI development, and advanced manufacturing. It also intends to support an estimated 450,000 supplier jobs nationwide.  

Apple’s aggressive reshoring effort sends a powerful statement that large-scale compliance with U.S. industrial policy is feasible—if costly. However, given the massive scope of investment, few companies will be able to replicate the strategy.  

Moreover, while the move shields Apple from the Trump administration’s new chip tariffs, it does not eliminate price pressures. As seen with TSMC’s 30% price increase for chips made in its Arizona fab, domestic manufacturing costs remain elevated due to a combination of labor shortages and supply constraints.  

The AMP’s success may ultimately hinge on its ability to scale without compromising Apple’s core margins. At least in the short term, it offers a playbook for semiconductor-adjacent firms to navigate the current tariff-driven industrial realignment. Invest early, build local, and secure access to the U.S. market before it’s too late.  

Whether the strategy plays out as Apple hopes, and its $600 billion investment pays off, will be an interesting story to follow over the next several years.

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