Presently, TSMC just constructs its most innovative chips in Taiwan. When the most sophisticated United States fabs are functional, they’ll be prepared to make “tens of millions of leading-edge chips” to “power products like 5G/6G smartphones, autonomous vehicles, and AI datacenter servers,” the Commerce Department stated in 2024.

TSMC has actually not verified the WSJ’s report however offered a declaration: “We’re pleased to have an opportunity to meet with the President and look forward to discussing our shared vision for innovation and growth in the semiconductor industry, as well as exploring ways to bolster the technology sector along with our customers.”

Trump risk of semiconductor tariffs still looms

Advanced chips are considered vital for AI development, which Trump has actually focused on, in addition to for nationwide security.

Without a consistent supply, the United States threats considerable technological and financial losses in addition to prospective weakening of its military.

To avoid that, Trump campaigned on enforcing tariffs that he declared would drive more semiconductor production into the United States, while slamming the CHIPS Act for costing the United States billions. Following through on that guarantee, in February, he threatened a “25 percent or more tariff” on all semiconductor imports, the WSJ reported. According to CNBC, Trump recommended those tariffs might be in result by April 2.

“We have to have chips made in this country,” Trump stated last month. “Right now, everything is made in Taiwan, practically, almost all of it, a little bit in South Korea, but everything—almost all of it is made in Taiwan. And we want it to be made—we want those companies to come to our country, in all due respect.”

While it’s uncertain if Trump prepares to overtly eliminate the CHIPS Act, his federal government moneying cuts might activate a future where the CHIPS Act passes away without any employees delegated accredit that business fulfill requirements for continuous award dispensations, a semiconductor market specialist group, Semiconductor Advisors, cautioned in a declaration last month.

“If I were running a chip company, I would not count on CHIPS Act funding, even if I had a signed contract,” SA’s declaration stated.