US Plans 1:1 Chip Production Rule To Curb Overseas Reliance

The U.S. is considering a rule requiring chipmakers to match the volume of semiconductors that their customers currently import from overseas providers through domestic production, or face tariffs. Reuters reports: President Donald Trump has doubled down on his efforts to reshore semiconductor manufacturing, offering exemptions from tariffs of roughly 100% on chips to firms that produce domestically. Companies that fail to sustain a 1:1 domestic-to-import ratio over time would face tariffs, the Journal said.
U.S. Commerce Secretary Howard Lutnick floated the idea with semiconductor executives, telling them it might be necessary for economic security, the Journal said.

'America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security,' the newspaper cited White House spokesperson Kush Desai as saying, who added that any reporting about policymaking should be treated as speculative, unless officially announced. Under the proposal, a company pledging to make chips in the U.S. would receive credit for that pledged volume, allowing imports without tariffs until the plant is complete, with initial relief to help ramp capacity, according to the report.

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