Though the United States is the global leader in designing chips, the vast majority of chip production happens overseas, particularly in U.S.-ally Taiwan.

Taiwan, home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), plays a crucial role in the global technology supply chain, serving major companies like Apple and Nvidia.

U.S. President Donald Trump announced plans Monday night to impose massive tariffs on Taiwan-made chips in an attempt to incentivize companies to relocate production to the United States. On the one hand,

U.S. President Donald Trump plans to impose tariffs on imported computer chips, pharmaceuticals and steel, he said on Monday, to push companies to manufacture more in the United States. The comments mark the latest in a number of trade-related threats unleashed by Trump in recent days.

President Donald Trump has stated that he plans to impose tariffs as high as 100% on semiconductors made outside the U.S. Trump previewed the plan Monday afternoon during a GOP event in his Doral, Florida,

If he follows through, it could raise prices on many day-to-day items as economists are almost unanimous that tariffs are passed on as consumer price increases.

Calling Biden’s CHIPS Act incentives ‘ridiculous,’ he claimed companies will build new plants in the US to avoid higher taxes and called DeepSeek’s AI a ‘positive.’