U.S. Advances Chip Tariffs as Taiwan Firms Plan More Investment

The U.S. Commerce Department is advancing a second phase of semiconductor tariffs built around a clear incentive: chips produced in the United States would be exempt, while overseas manufacturing would face added costs. The policy extends Washington’s effort to expand domestic chip capacity and secure critical supply chains, while increasing pressure on major producers such as Taiwan Semiconductor Manufacturing Co. to shift more investment and production to the U.S.

The proposed measures are prompting Taiwanese chipmakers to consider further expansion in the United States as demand for artificial-intelligence infrastructure strains advanced semiconductor supply. Taiwanese companies are expected to add $20 billion to $30 billion in U.S. investment, on top of existing commitments. The timing and scale of those projects will depend on the final tariff rules, which the Commerce Department has yet to detail as it moves ahead with the second-phase framework.