The Trump administration is going after semiconductor imports

The Trump administration is reportedly considering a new policy aimed at boosting U.S. semiconductor production by enforcing a 1:1 manufacturing ratio. Under this approach, domestic semiconductor companies would be required to produce as many chips in the U.S. as their customers import from overseas manufacturers. Companies failing to meet this ratio could face tariffs, although the timeline for achieving this target remains unclear. This move is part of President Donald Trump’s broader efforts, initiated in August, to impose tariffs on the semiconductor industry and encourage reshoring of chip manufacturing. While the ratio-based policy could eventually increase domestic chip production, it poses significant challenges in the short term. Semiconductor manufacturing plants are complex and costly to build, with long lead times before becoming operational. For example, Intel’s Ohio plant, initially expected to open in 2025, has been delayed until 2030. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to support chip production infrastructure in the U.S., but details remain sparse. The proposed