On August 15, President Donald Trump told reporters aboard Air Force One that his administration will announce new tariffs on semiconductors within the next two weeks, with rates that could reach as high as 300%. The proposed measures would accompany broader duties on steel and pharmaceuticals under a national security investigation launched by the U.S. Department of Commerce earlier this year.

The investigation, initiated in April under Section 232 of the 1962 Trade Expansion Act, is examining the national security implications of importing semiconductors, semiconductor manufacturing equipment, and related products. While Trump previously floated tariff levels of 25% to 100%, his latest remarks signal a dramatic escalation.

"I'll be setting tariffs—200%, 300% maybe—on chips and semiconductors," Trump said, en route to Alaska for a summit with Russian President Vladimir Putin.

Industry groups and leading chipmakers—including Intel, TSMC, Micron, and Qualcomm—have already urged the administration to proceed with caution. The Semiconductor Industry Association (SIA) warned that sweeping tariffs could unintentionally harm the U.S. semiconductor sector, disrupt supply chains, and undermine American competitiveness in artificial intelligence and advanced electronics.

Trump has suggested that companies committing to U.S.-based manufacturing could be exempt from the tariffs, even if their facilities are still under construction. Apple, which recently pledged an additional $100 billion in U.S. investments and launched a "Made in America" initiative with supply chain partners, is widely seen as a likely beneficiary. Other firms such as TSMC, Samsung, and Intel—each of which has announced large-scale U.S. fab projects—may also qualify for exemptions.

Despite the threats, Trump has a track record of announcing extreme tariff proposals without fully implementing them. Analysts warn that this "uncertainty strategy" has already forced chipmakers, electronics brands, and AI companies to prepare costly contingency plans that may never be needed, delaying real investment decisions and straining supply chains.

The prospect of triple-digit tariffs has also accelerated capital spending in the United States. Major electronics manufacturers are expanding server and AI-related production capacity: Compal announced a $300 million investment in U.S. facilities, Quanta committed $170 million to expand its Tennessee operations, and Wistron allocated up to $62.5 million for upgrades in Dallas. Together, these moves add more than $530 million in new U.S. investments. Foxconn and Inventec are also building new sites in the country.

While it remains unclear whether Trump will follow through, the possibility of tariffs as high as 300% on semiconductors has injected fresh volatility into a global industry already navigating supply chain disruptions, intense competition, and the race for AI dominance.