Former U.S. President Donald Trump has made headlines once again, this time by accusing Taiwan of “stealing” America’s chip manufacturing business. In a recent speech, he criticized technology giants such as Intel for becoming too reliant on Taiwan-based chip powerhouse TSMC (Taiwan Semiconductor Manufacturing Company). To counteract this dependence, Trump has proposed imposing tariffs as high as 100 percent on foreign-made processors. His goal is to pressure companies into shifting semiconductor production back to the United States.

Trump’s approach is a contrast to the CHIPS and Science Act passed in 2022 under President Joe Biden’s administration. This act allocated $280 billion to boost domestic semiconductor manufacturing, with Intel securing $7.9 billion in funding to expand U.S. production. However, Trump argues that subsidies are not the answer. Instead, he believes aggressive tariffs will compel companies to manufacture domestically.

“We had Intel, we had the business, and Taiwan took it. We are going to bring it back,” Trump stated. His vision is clear—make producing chips overseas so expensive that companies have no choice but to establish factories within the U.S.

In response, TSMC, which produces chips for industry leaders like Apple, Nvidia, and Intel, has announced a $17 billion expansion in U.S. chip production and is currently building a second Arizona-based fabrication plant. However, the most advanced semiconductor technology still remains in Taiwan, leaving Trump doubtful that these moves go far enough. Experts warn that if heavy tariffs were implemented, they could drive up the cost of technology products that rely on foreign-made chips.

Trump’s aggressive stance is already causing companies to re-evaluate their global strategies. Foxconn, the Taiwanese electronics giant responsible for assembling iPhones, is reportedly considering U.S. investments to mitigate potential tariff penalties. Meanwhile, ASRock, a key motherboard manufacturer, is shifting production to Taiwan and Vietnam in an attempt to bypass tariffs aimed at China.

While Trump argues that these measures will lead to long-term benefits, including job creation and increased U.S. tech independence, others fear immediate economic repercussions. Some analysts warn that a drastic tariff hike could disrupt supply chains, leading to higher production costs that might ultimately be passed on to U.S. consumers. Furthermore, retaliation from Taiwan, China, or other nations could make it increasingly difficult for American firms to secure key semiconductor components.

Despite concerns, Trump insists that the pain will be temporary. He believes that if companies are forced to manufacture chips in the U.S., it will ultimately strengthen the nation’s technological and economic standing. “It may hurt for a while, but eventually, all chip companies will come back home,” he declared.

However, the potential consequences of such a policy remain uncertain. If enforced, these tariffs could lead to higher CPU and tech product prices across the board. In addition, a possible global trade war could exacerbate tensions with not only Taiwan and China but also other key allies in the semiconductor market.

The debate over reshoring chip manufacturing will undoubtedly continue. While Trump’s tariffs could lead to increased domestic production, they may also introduce new challenges, including higher costs for businesses and consumers alike. As the industry reacts to these potential changes, the real impact of such a policy remains to be seen. Will tariffs be the catalyst needed to bring semiconductor production back to American soil, or will they complicate an already fragile global supply chain? Only time will tell.