TAIPEI (TVBS News) — President Donald Trump announced Thursday (Aug. 7) his plan to impose a punitive 100 percent tariff on imported semiconductors unless companies produce chips domestically or commit to building American manufacturing facilities. The aggressive trade policy will have profound implications for Taiwan's crucial semiconductor industry, which dominates global chip production. Taiwan Semiconductor Manufacturing Company (TSMC, 台積電), the world's largest contract chipmaker, will receive exemption from these devastating tariffs due to its substantial U.S. investments.
TSMC qualifies for the 100 percent semiconductor tariff exemption through its massive Arizona plant investment, which employs more than 3,000 workers and began mass chip production in 2024. The Taiwanese giant also operates a fabrication facility in Washington state plus design service centers in Texas and California. These strategic American investments enable TSMC to continue manufacturing high-end semiconductors in Taiwan while completely avoiding the punitive U.S. tariffs.
The tariffs aim to bolster domestic semiconductor production and incentivize foreign companies to establish U.S. manufacturing facilities, though Trump stressed that investment commitments must be honored to avoid retroactive payments. Trump highlighted massive technology investments during an Oval Office press conference, including Apple's US$600 billion (around NT$17.9 trillion), NVIDIA's (輝達) US$500 billion (around NT$14.9 trillion), Micron Technology's (美光) US$200 billion (around NT$6.0 trillion), and SoftBank's commitment exceeding US$100 billion (around NT$3.0 trillion).
Apple CEO Tim Cook announced an additional US$100 billion (around NT$3.0 trillion) American investment while standing alongside President Trump in the Oval Office, bringing Apple's total U.S. commitment to US$600 billion (around NT$17.9 trillion). Cook revealed that Apple will become the primary customer of TSMC's Arizona semiconductor plant and expects suppliers to produce 19 billion chips domestically. Every iPhone and Apple Watch sold globally will feature protective glass manufactured by Corning in Kentucky.
Renowned semiconductor analyst Lu Hsing-chih (陸行之) noted in a Facebook post that Trump's tariff policy benefits Apple and TSMC through exemption clauses. Lu expressed concern that other countries might emulate this protectionist approach, potentially causing global semiconductor industry havoc. The analyst suggested that United Microelectronics Corp. (聯電), Vanguard International Semiconductor (世界先進), ASE Technology Holding (日月光), and Samsung could secure exemptions by expanding U.S. production. ◼ (At time of reporting, US$1 equals approximately NT$29.890)