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In its latest bid to boost semiconductor production in the U.S., the Trump administration is\u00a0reportedly considering\u00a0a\u00a0ratio-based approach that would penalize domestic manufacturers with tariffs if they don\u2019t produce enough chips.<\/p>\n
The\u00a0administration is weighing a policy that would mandate\u00a0U.S. semiconductor companies to manufacture the same number of chips in the\u00a0U.S. as their customers import from overseas manufacturers, The Wall Street Journal<\/a> reported, citing anonymous sources.\u00a0\u00a0<\/p>\n Companies that\u00a0don\u2019t\u00a0comply with\u00a0this 1:1 ratio will be subject to\u00a0tariffs, the report said, though the timeline to achieve this ratio isn\u2019t clear.<\/p>\n President Donald Trump has been\u00a0talking about\u00a0imposing tariffs on the semiconductor industry<\/a>\u00a0since the beginning of August.\u00a0\u00a0<\/p>\n Such a ratio-based approach would be unusual if the administration wants to achieve its goal of bringing semiconductor manufacturing\u00a0back stateside.\u00a0It could eventually lead to more domestic semiconductor production, but it has\u00a0the potential to\u00a0hurt the\u00a0U.S. chip industry until manufacturing ramps up to meet the immense demand.\u00a0\u00a0<\/p>\n Getting domestic chip manufacturing\u00a0plants off the ground is neither a small nor a fast endeavor.\u00a0Intel\u2019s Ohio plant, originally slated to open this year, has been\u00a0delayed<\/a>\u00a0multiple times<\/a> and\u00a0is now\u00a0targeting a launch in 2030.\u00a0\u00a0<\/p>\n Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) in March said it is committing $100 billion over the next four years<\/a> for building infrastructure to support chip production plants in the U.S., though it was light on details.<\/p>\n