The Trump administration has announced sweeping changes to the H-1B visa program, sparking alarm among technology companies that depend heavily on foreign talent. Under a proclamation signed Friday, new H-1B applicants would be required to pay a $100,000 annual fee, although the White House later clarified that the rule will not apply to current visa holders or renewals until the next application cycle.

According to Reuters, U.S. firms including Amazon, Microsoft, JPMorgan, and Goldman Sachs immediately advised employees on H-1B visas to avoid international travel until the details were confirmed. Amazon and Microsoft together secured more than 15,000 H-1B approvals in the past fiscal year, while Amazon led all employers with more than 10,000 visas granted in 2024, U.S. government data shows. Immigration law firms also urged clients to re-enter the country before the rules take effect on Sunday.

The H-1B program issues 65,000 visas annually for specialized foreign workers, plus an additional 20,000 for those with advanced degrees. Indian nationals accounted for 71% of H-1B approvals last year, with Chinese nationals representing about 12%. India's Ministry of External Affairs warned that the new measures could cause “humanitarian consequences” by disrupting families, while also undermining the talent flows that have driven technology and innovation in both countries.

Industry leaders voiced sharp criticism. Y Combinator CEO Garry Tan called the changes a “massive gift” to overseas tech hubs such as Toronto and Vancouver, while European and Canadian business groups said the policy could accelerate the shift of skilled talent away from the U.S. The move also drew warnings from academics that U.S. research could be set back if foreign scientists face higher barriers.

In addition to the visa fee, President Trump introduced a so-called “gold card” program granting permanent residency for a $1 million investment.

TSMC Workforce Largely Unaffected

While the reforms are expected to weigh heavily on Silicon Valley, Taiwan Semiconductor Manufacturing Company (TSMC) is unlikely to be significantly affected. Most of its U.S.-based staff hold E-2 visas—commonly referred to as “treaty investor visas”—which are available to citizens of countries with commercial treaties with Washington, including Taiwan, Japan, and South Korea. Unlike the H-1B, the E-2 visa can be renewed indefinitely but restricts holders from freely switching employers.

Industry observers note that the proposed fee represents a sharp escalation in U.S. immigration costs, with potential long-term consequences for America's competitiveness in artificial intelligence and advanced technology.