On August 6 (local time), President Donald Trump announced sweeping new trade measures from the Oval Office, revealing plans to impose a 100% tariff on all imported semiconductor chips. However, he confirmed that companies with existing or pledged chip production facilities in the United States—such as Apple, TSMC, Samsung, and SK Hynix—will be exempt from the tariffs.

Flanked by Vice President Vance, Treasury Secretary Besant, Commerce Secretary Rutnik, and Apple CEO Tim Cook, Trump framed the policy as a move to "bring manufacturing back to America." He emphasized that only firms investing in U.S.-based production would avoid the hefty levies. Even companies with construction still underway could qualify, but those that renege on their commitments risk retroactive tariff collection.

Apple seized the moment to unveil a bold new expansion. CEO Tim Cook announced the company would invest an additional $100 billion in U.S. operations, raising its total planned U.S. investment to $600 billion over the next four years. Much of this will be carried out through the newly launched "American Manufacturing Program" (AMP), a supply chain initiative that brings advanced production closer to home.

AMP's first wave of key partners includes Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom. Notably, Apple will spend $2.5 billion to help Corning build the world's most advanced smartphone glass production line in Harrodsburg, Kentucky—set to supply cover glass for every iPhone and Apple Watch sold globally.

Apple also signed a long-term deal with Coherent to supply facial recognition lasers, and will partner with Texas Instruments on chip production equipment in Utah and Texas. GlobalFoundries, which already makes legacy chips for the U.S. government, will produce wireless charging chips for Apple at its New York fab.

According to Apple, its U.S.-based supply chain is expected to produce over 19 billion chips this year, including those manufactured by TSMC at its Arizona plants. The company aims to establish an "end-to-end" chip supply chain within the U.S.

Earlier this year, Apple also invested $500 million in a U.S. rare earth mining firm and committed to building AI server infrastructure in Texas.

Trump praised the announcements, saying, "If you're building here—even if it's not finished—you won't be taxed." He noted that enforcement mechanisms are in place to penalize companies that backtrack on U.S. investment pledges.

Meanwhile, other semiconductor giants are poised for similar exemptions. TSMC recently increased its U.S. investment by another $100 billion, bringing its total to $165 billion to construct three advanced chip fabs, two packaging plants, and an R&D center in Arizona.

Samsung, too, is investing $45 billion in two advanced fabs, a packaging plant, and a research center in the U.S. by 2030. SK Hynix plans to invest $3.87 billion in an advanced AI memory packaging and R&D facility in West Lafayette, Indiana. South Korea's chief trade negotiator confirmed the country would receive most-favored-nation tariff exemptions under existing agreements with the U.S.

Several top chipmakers, including Intel, Micron, and GlobalFoundries, already operate U.S. fabs. According to the Semiconductor Industry Association, since 2020, over 130 semiconductor-related projects have been announced in the U.S., totaling more than $600 billion in planned investment and supporting over 500,000 jobs.

Despite these efforts, analysts warn that America's current capacity may still fall short of the advanced process needs of many chip designers, especially those reliant on Asia-based foundries.

Trump's move marks a sharp escalation in his effort to revive domestic manufacturing, applying pressure via tariffs rather than incentives. Experts warn the strategy could inflate prices across a range of consumer electronics—from smartphones to laptops—but Trump remained firm, stating, "Apple is coming back to America."

Whether full device assembly will follow remains uncertain. Cook reaffirmed that while iPhone assembly will remain offshore "for now," most core components—including semiconductors, glass, and Face ID modules—are already produced in the U.S.

Trump, undeterred, has also floated a 50% tariff on devices manufactured in India, where Apple has recently expanded iPhone production. He threatened similar duties on electronics from Vietnam, where many Apple Watches, iPads, and MacBooks are made.

The details of Trump's semiconductor tariff policy are still unfolding, but one thing is clear: the administration is betting big that tough trade measures will push global tech giants to shift high-value manufacturing back to American soil.