US President Announces 100% Tariffs on Semiconductors, Sparking Industry Lobbying

In a significant development, the United States President has announced plans to impose approximately 100% tariffs on semiconductors and chips. This move has sparked intense lobbying efforts from major tech companies, including Apple and NVIDIA, as they seek favorable conditions before the final policy is implemented. The announcement has also led to speculation about the potential impact on the semiconductor industry and the broader market.

In a related development, the President met with the CEO of TSMC, a leading semiconductor manufacturer, at the White House. This meeting came just hours before the President's announcement of a $100 billion investment by Apple in the United States. The CEO's visit to the White House was the second in a month, following a previous meeting in July where the CEO participated in an AI summit with high-level government officials. Shortly after the July meeting, the United States approved the sale of H20 chips to China, a move that has raised eyebrows in the industry.

The President's decision to impose tariffs on semiconductors and chips is part of a broader strategy to encourage domestic manufacturing. In an interview, the President stated that the measures are aimed at promoting the production of semiconductors and chips within the United States. This announcement has led to increased lobbying efforts from companies seeking exemptions from the tariffs. The President also indicated that the final policy on drug and chip tariffs would be announced in the coming week, adding to the urgency of the lobbying efforts.

In a separate development, the Korean trade envoy has stated that Samsung Electronics and SK Hynix will not face 100% tariffs on chips from the United States. This exemption is due to the favorable treatment that Korea enjoys under the US-Korea trade agreement. Samsung has already invested in two chip manufacturing plants in Texas, while SK Hynix has announced plans to build an advanced chip packaging plant and AI product research facilities in Indiana. However, there are concerns that SK Hynix's packaging plant may not fully qualify for tariff exemptions, while Samsung stands to benefit from its inclusion in Apple's supply chain.

Apple has confirmed that Samsung Electronics will supply chips for its products, including the iPhone, from its Texas manufacturing plant. This move is seen as a strategic decision by Apple to secure a stable supply of chips amid the ongoing trade tensions. The announcement has also raised questions about the potential impact on other chip manufacturers and the broader semiconductor industry.