🇺🇸 U.S. Launches Semiconductor Probe, Paving Way for New Tariffs

In a sweeping move set to impact the global electronics landscape, the U.S. Commerce Department has launched a national security investigation into semiconductor imports and downstream electronics, as disclosed in a Federal Register notice released Monday.

The investigation casts a wide net—covering everything from chip components and silicon wafers to chipmaking equipment and consumer products embedded with semiconductors.

Despite President Trump’s earlier claims that semiconductors and electronic products would be temporarily exempt from reciprocal tariffs, the official notice clarifies that these technologies remain on the table for future trade action.

What’s at stake?

• National security concerns are driving this probe under Section 232 of the Trade Expansion Act of 1962, a mechanism previously used to justify steel and aluminum tariffs.
• The goal? To assess whether increasing domestic semiconductor production could reduce foreign reliance and bolster national defense.
• Comments on the probe are invited for 21 days starting Wednesday.

The U.S. heavily relies on chip imports from tech powerhouses like Taiwan, South Korea, and the Netherlands, despite recent onshoring pushes via the $280B CHIPS and Science Act.

In parallel, tech giants are ramping up local commitments:

• Nvidia has unveiled plans to manufacture its AI supercomputers entirely in the U.S.
• TSMC pledged an additional $100B investment into advanced manufacturing facilities in America.

While new tariff rates are expected to be announced in the coming week, flexibility will reportedly be extended to certain companies.

Commerce Secretary Howard Lutnick confirmed on ABC’s This Week that electronics and chip-specific tariffs could roll out “within a month or two.”

The electronics supply chain—already strained by geopolitical tensions and demand spikes—could face another jolt as this investigation progresses.