{"id":19890,"date":"2025-10-09T01:46:13","date_gmt":"2025-10-09T01:46:13","guid":{"rendered":"https:\/\/lonecandle.com\/?p=19890"},"modified":"2025-10-09T01:46:14","modified_gmt":"2025-10-09T01:46:14","slug":"trumps-100-percent-chip-tariff-could-make-it-more-expensive-to-build-more-semiconductors-in-the-u-s","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=19890","title":{"rendered":"Trump&#8217;s 100 Percent Chip Tariff Could Make It More Expensive To Build More Semiconductors in the U.S."},"content":{"rendered":"\n<p>&#8220;President Donald Trump is considering imposing a 100 percent tariff on semiconductors to incentivize chipmakers to invest in domestic manufacturing, a move that would make it harder to build out American chip fabrication.<\/p>\n\n\n\n<p>&#8230;<\/p>\n\n\n\n<p>The Chamber of Commerce&nbsp;<a href=\"https:\/\/www.regulations.gov\/comment\/BIS-2025-0021-0134\" target=\"_blank\" rel=\"noreferrer noopener\">warns<\/a>&nbsp;that a 1 percent increase in tariffs on chips and semiconductor manufacturing equipment will increase the construction costs of all announced domestic semiconductor fabrication plants (valued at $540 billion) by as much as $3.5 billion. A 100 percent rate increase, then, could increase construction costs for these projects by $350 billion. Moreover, &#8220;additional costs will reduce demand for end market products [and] reduce investments in semiconductor R&amp;D,&#8221; diminishing American semiconductor dominance instead of enhancing it.&nbsp;&nbsp;<\/p>\n\n\n\n<p>&#8230;<\/p>\n\n\n\n<p>Intel, &#8220;the only American company [that is] capable of producing leading-edge logic semiconductors,&#8221;&nbsp;<a href=\"https:\/\/www.regulations.gov\/comment\/BIS-2025-0021-0068\" target=\"_blank\" rel=\"noreferrer noopener\">warned<\/a>&nbsp;that &#8220;Section 232 tariffs could increase U.S. manufacturing costs for essential materials and components.&#8221; The Semiconductor Industry Association, a trade association and lobbying group,&nbsp;<a href=\"https:\/\/www.regulations.gov\/comment\/BIS-2025-0021-0096\" target=\"_blank\" rel=\"noreferrer noopener\">said<\/a>&nbsp;that &#8220;removing trade and other barriers to U.S. chips in overseas markets,&#8221; which account for 70 percent of revenue to the U.S. semiconductor industry, is key to making the expansion of domestic capacity economically viable. Right now, &#8220;the complete onshoring of all semiconductor supply chain elements is not feasible, much less in a short period of time,&#8221; because &#8220;supply chains have evolved over decades and cannot be rearranged overnight or even within a decade&#8221;&#8221;<\/p>\n\n\n\n<p><a href=\"https:\/\/reason.com\/2025\/09\/29\/trumps-100-percent-chip-tariff-could-make-it-more-expensive-to-build-more-semiconductors-in-the-u-s\">https:\/\/reason.com\/2025\/09\/29\/trumps-100-percent-chip-tariff-could-make-it-more-expensive-to-build-more-semiconductors-in-the-u-s<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;President Donald Trump is considering imposing a 100 percent tariff on semiconductors to incentivize chipmakers to invest in domestic manufacturing, a move that would make it harder to build out American chip fabrication.<\/p>\n<p>&#8230;<\/p>\n<p>The Chamber of Commerce warns that a 1 percent increase in tariffs on chips and semiconductor manufacturing equipment will increase the construction costs of all announced domestic semiconductor fabrication plants (valued at $540 billion) by as much as $3.5 billion. A 100 percent rate increase, then, could increase construction costs for these projects by $350 billion. Moreover, &#8220;additional costs will reduce demand for end market products [and] reduce investments in semiconductor R&#038;D,&#8221; diminishing American semiconductor dominance instead of enhancing it.  <\/p>\n<p>&#8230;<\/p>\n<p>Intel, &#8220;the only American company [that is] capable of producing leading-edge logic semiconductors,&#8221; warned that &#8220;Section 232 tariffs could increase U.S. manufacturing costs for essential materials and components.&#8221; The Semiconductor Industry Association, a trade association and lobbying group, said that &#8220;removing trade and other barriers to U.S. chips in overseas markets,&#8221; which account for 70 percent of revenue to the U.S. semiconductor industry, is key to making the expansion of domestic capacity economically viable. Right now, &#8220;the complete onshoring of all semiconductor supply chain elements is not feasible, much less in a short period of time,&#8221; because &#8220;supply chains have evolved over decades and cannot be rearranged overnight or even within a decade&#8221;&#8221;<\/p>\n<p>https:\/\/reason.com\/2025\/09\/29\/trumps-100-percent-chip-tariff-could-make-it-more-expensive-to-build-more-semiconductors-in-the-u-s\/<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[1229,221,217,165,290,797,377,208,141,1005,226,170],"class_list":["post-19890","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-chips","tag-donald-trump","tag-economics","tag-economy","tag-imports","tag-industry","tag-manufacturing","tag-tariffs","tag-taxes","tag-technology","tag-trade","tag-trump"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19890"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19890\/revisions"}],"predecessor-version":[{"id":19891,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19890\/revisions\/19891"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}