U.S. President Donald Trump announced plans to impose tariffs on computer chips and semiconductors “in the very near future,” with rates potentially reaching 100%. Speaking to Republican members of Congress on Monday night, Trump criticized the CHIPS Act for subsidizing companies like TSMC, claiming tariffs would force foreign manufacturers to relocate production to the U.S. “The only way you’ll get out of this [tariffs] is to build your plant right here in America,” he said. While TSMC has invested $40 billion in its Arizona factory, most of its production remains in Taiwan, supplying major clients like Apple, Nvidia and AMD.

Trump’s proposal risks significant disruptions to the semiconductor supply chain, which underpins consumer electronics and computing products globally. The plan could drive up costs for U.S. tech companies and consumers while taking years for promised benefits to materialize, as building new fabs and shifting production are long-term processes.