Ahead of chip tariffs, U.S. considers exemptions for big tech companies

# Zhang Yaqi

It is reported that the Trump administration plans to provide Taiwan Semiconductor Manufacturing Company (TSMC) with a corresponding chip tariff exemption quota based on the scale of its investment in the United States (a committed $165 billion). TSMC may allocate this quota to its American enterprise customers such as Amazon and Google to offset import tariffs. The current plan is still being adjusted.

The Trump administration intends to offer tariff exemptions to major technology companies like Amazon, Google, and Microsoft under the upcoming chip tariff regime, with the exemption quota tied to TSMC's investment commitments in the United States.

As reported by the media on the 10th, the U.S. Department of Commerce is formulating a plan to grant tariff exemptions to large technology companies, with the scale of exemptions linked to TSMC's investment in the U.S. The new scheme will allow TSMC to distribute the exemption quota it receives to its American customers, enabling these companies to import chips produced by TSMC duty-free. TSMC has previously committed to investing $165 billion in the U.S. to build production capacity.

A government official familiar with the plan stated that the proposal is still being adjusted and has not yet been signed by the president. The official said:

"We will monitor the progress closely like hawks after the announcement to ensure the integrity of the goals we aim to achieve through tariffs and rebates is not compromised, and to make sure this does not end up being a free handout to TSMC."

### Exemption Quota Linked to TSMC's U.S. Production Capacity

Under this plan, the exemption quota obtained by TSMC will be proportional to the scale of production capacity it constructs in the United States. As the world's leading chipmaker, TSMC produces most of the advanced chips used for artificial intelligence (AI).

Reports indicate that TSMC can then allocate the exemption quota it obtains based on its investment to its major U.S. technology customers, allowing them to import chips tariff-free. The scale and scope of the rebates for major U.S. tech firms depend on TSMC's projected production capacity in the U.S. in the coming years, and many details remain unclear. The U.S. Department of Commerce, the White House, and TSMC have not responded to requests for comment.

However, the White House warned in an announcement that the Commerce Secretary has recommended "imposing broader tariffs on semiconductors with significant rates" as part of the second phase of the national security investigation into the industry. The announcement stated that this phase may be accompanied by a tariff offset program, allowing companies that invest in U.S. semiconductor production to obtain lower tariffs.

Source: Wall Street News

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