Trump tariffs target chip imports, raising security prices

Brace for major shifts as the U.S. considers semiconductor tariffs and security mandates reshape chipmaking.

The semiconductor industry is entering a critical phase marked by unprecedented geopolitical and regulatory pressures. On one front, the U.S. government, specifically President Trump, is reiterating the possibility of new semiconductor tariffs aimed at compelling foreign chipmakers to localize production on American soil.  

Simultaneously, governments worldwide, from the EU to East Asia, are ramping up stringent security mandates. These regulations will hold chipmakers financially and legally accountable for vulnerabilities in their hardware. This pressure is forcing companies to quickly rethink their strategies, as growing concerns over price variations prompt immediate diversification.  

As the industry braces for a global production shake-up, firms that can quickly adapt to these demands will have a competitive edge.

Tariffs on chip imports

The threat of new U.S. semiconductor tariffs continues to loom over the global supply chain. Recently given new life by President Trump’s stated intent to impose punitive duties on chipmakers that aren’t already manufacturing or committed to manufacturing within U.S. borders. Without specifying a timeline or tariff percentage, the Trump administration’s language adds another layer of unpredictability to a market already in turmoil.  

The announcement earlier this month marks a fresh escalation in President Trump’s effort to couple semiconductor production with an “America First” trade approach. His latest proposed tariff would only apply to companies lacking existing U.S. operations or a binding commitment to bring domestic capacity online. For those who promise compliance but fall short, retroactive penalties are an added threat.  

Firms with substantial U.S. footprints, such as Apple and TSMC, would be shielded from the proposed tariff. President Trump called out the former specifically when discussing potential duties at a meeting where Apple CEO Tim Cook looked on. Chipmakers who rest in the perceived “safe zone” are already benefitting, with many seeing their stock prices rise in the days since Trump discussed the new tariffs.  

Samsung and SK Hynix, who are both pursuing expansion projects in the U.S., seem to be on the right side of the line—at least for now. Yet, officials from the Trump administration are reportedly reviewing whether the South Korean firms deserve the “firmly committed” status needed to qualify for tariff relief.  

Despite the volatile outlook for companies doing business with the U.S., Chinese chipmakers like SMIC remain outwardly unfazed by tariff disruptions. Bolstered by robust domestic demand and contingency strategies that prioritize supplier diversification, SMIC has reported strong resilience. Whether that is sustainable in the face of new tariffs shaking up the supply chain remains to be seen.  

For procurement teams, the implications of the Trump administration’s proposed tariffs are massive. If enacted, they could reshape global component pricing virtually overnight. Sourceability’s Datalynq market intelligence platform provides early-warning signals for parts at risk of disruption due to tariff exposure and surfaces vetted alternatives. Combined with our global network of trusted suppliers, Sourceability helps buyers ensure a steady flow of critical parts despite challenging market conditions.  

Rising security requirements for chipmakers

As semiconductor manufacturing becomes increasingly entangled with national security, regulatory frameworks across the globe are tightening. Whether under the EU Cyber Resilience Act, evolving U.S. export controls, or Asia-Pacific regional guidelines, manufacturers are now being held directly accountable for the resilience of their products.  

As they look to the design pathways of tomorrow’s components, chipmakers are already feeling the impact.  

Increasingly, regulators are demanding proactive, built-in security mechanisms at the silicon level rather than relying on software patches or firmware updates. The goal is to shift the entire industry from a “patch and respond” mindset to one of “design for resilience.” Achieving this will be a massive feat requiring the introduction of new layers of verification, authentication, and threat detection into billions of components.  

With a new era of hardware security mandates emerging, compliance has become an integral part of sustainable operations. Failure comes at a steep cost. The EU Cyber Resilience Act carries penalties that could reach €15 million or 2.5% of annual global revenue. More critically, failing to meet outlined requirements could see chipmakers excluded from key markets, especially if they supply components critical to defense, infrastructure, or AI systems.  

Aside from the EU’s regulation, frameworks like the Open Compute Platform (OCP) SAFE and Caliptra, as well as the U.S. National Cybersecurity Strategy Implementation Plan (NCSIP), give chipmakers new rules to play by.  

Not every market segment or company will be affected by this renewed push for security, but resiliency is poised to become a major strategic advantage in the years ahead.

Of course, executing these visions is the challenge. Security-first design on a broad level raises complexity and costs across the supply chain from processors and chiplets to memory and interconnects. Smaller firms and those without dedicated security teams face the profound risk of being squeezed out of lucrative markets or hamstrung from competing on price due to non-compliance or inability to invest in the requisite design processes.  

At a deeper level, these security requirements reflect a global trend linking geopolitical tensions with supply chain trust. As governments prioritize domestic manufacturing, they also demand robust security assurance. International design collaborations, IP sharing, and cross-border foundry engagements must now be reevaluated through the lens of supply chain trust and data sovereignty. To cover all bases, chipmakers must invest heavily in both physical and cyber-resilience, a shift with major implications for R&D pipelines and long-term innovation strategies.

Sourceability offers security-focused services that go beyond parts procurement. Our digital platform supports chipmakers with everything from documentation to compliance audits to strategy alignment, helping to reduce liability and keep products market-ready.