Trump Administration Mulls 1:1 Ratio For US-Made, Imported Chips

US President Donald Trump's administration is considering a sweeping plan to mandate that technology companies manufacture as many semiconductors in the United States as they import, The Wall Street Journal reported. The move is aimed at slashing reliance on foreign-made chips and reshaping global supply chains.

Under the proposed framework, chipmakers would be required to maintain a 1:1 ratio between domestic output and overseas imports. Companies unable to meet the balance over time could face tariffs. Trump had earlier warned of a potential 100% tariff on imported semiconductors but said firms investing more in US production could avoid such penalties.

Analysts noted that achieving the ratio could prove tougher than boosting investment, given that overseas chips are often cheaper and global supply chains remain complex. Expanding domestic capacity would also take time. To ease adjustment, the system may credit companies for future US production, allowing them to import without tariffs until new facilities are operational.

The plan could complicate business for US tech majors like Apple and Dell Technologies, which rely heavily on devices assembled with multiple chips sourced globally. But it may bolster the negotiating power of manufacturers such as Taiwan Semiconductor Manufacturing Co. (TSMC), Micron Technology, and GlobalFoundries.

Commerce Secretary Howard Lutnick has already discussed the proposal with industry executives, arguing that the ratio is necessary to safeguard economic security. Officials have long warned that dependence on Taiwan — a hub for advanced chips and seen as vulnerable to Chinese aggression or natural disasters — poses strategic risks for the US.

White House spokesman Kush Desai stressed that semiconductors are critical for national and economic security, but cautioned that "unless officially announced by the administration, any reporting about our policymaking should be treated as speculative."

The plan is part of the administration's broader strategy to leverage tariffs and investment incentives to increase US semiconductor output, though details on enforcement and tariff calculations remain under discussion.