The Trump administration is considering sweeping new tariffs on semiconductors and related technology imports to accelerate domestic chip production, according to a Politico report citing eight sources familiar with the matter.
The proposal would expand import duties beyond semiconductors to include products such as laptops, gaming consoles and data center servers. A phase-in period is under review, though the structure may be adjusted in the coming weeks or months.
Commerce Secretary Howard Lutnick has advocated for a policy that would condition tariff relief for foreign firms on their investments in U.S. semiconductor manufacturing facilities. The administration aims to reduce reliance on Asian suppliers, including those in Taiwan, South Korea and Malaysia, where much of the global chip supply is currently concentrated.
The tech industry has raised concerns about the potential impact of the tariffs, citing an existing supply shortage that has driven up prices for memory chips critical to artificial intelligence systems. Nvidia, a leading AI chipmaker, warned on Wednesday that elevated memory chip costs would compress gross profit margins in upcoming quarters.
Industry advocates support the goal of expanding U.S. chip production but emphasize that semiconductor fabrication plants require billions of dollars in investment and multiple years to complete. Until domestic capacity scales up, American companies will continue to depend on foreign imports, particularly from Asian manufacturers.
The administration has not yet finalized the scope or timing of the proposed tariffs, and further revisions are possible as discussions progress.
