US Threatens 100% Tariffs on Chipmakers to Force Domestic Investment

Tensions are rising in the semiconductor industry as Washington signals the possibility of imposing 100% tariffs on memory chipmakers from South Korea and Taiwan unless they expand manufacturing investments inside the United States.

US Commerce Secretary Howard Lutnick said companies face a clear choice: either absorb 100% tariffs on imports or manufacture more chips on American soil, describing the move as part of a broader industrial policy to restore US manufacturing leadership.

Lutnick made the remarks during the inauguration of a new Micron Technology facility in New York, noting that trade terms negotiated with Taiwan could also apply to Korean chipmakers as the administration seeks to reduce reliance on foreign semiconductor imports.

For now, President Donald Trump has refrained from imposing broad tariffs on most foreign-made semiconductors, opting instead for negotiations.

However, the White House has indicated that a new tariff package, combined with incentives for domestic production, could be announced soon.

High-bandwidth memory chips have become critical for artificial intelligence data centers, driving fierce competition among US and Asian manufacturers.

Companies have repeatedly warned of supply constraints as demand accelerates.

Recent agreements already commit Taiwanese and Korean firms to billions of dollars in US investments.

Analysts say the threat of 100% tariffs could further accelerate onshore manufacturing decisions as companies move to secure access to the American market.