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US Launches a Semiconductor Probe Into Feasibility Of Domestic Chip Production; Likely a Pre-Cursor To New & Harsh Chip Tariffs
The US Commerce Department is now scrutinizing semiconductor imports, evaluating the potential in the domestic chip industry, and enforcing export controls. Trump Administration Wants To "Absolutely" Prioritize US Chipmakers; Intel & Others Likely To Benefit From Chip Tariffs Well, under the Trump administration, a priority is set towards making the US self-subsistent on chip production, and recent moves by the likes of TSMC to expand into the nation is a clear example of what the current government envisions. Now, based on a Federal Register filing, it is revealed that the Commerce Department is potentially looking into the uplifting of domestic chip markets, which not only validates the fact that chip tariffs are incoming but also shows that the administration is keen towards aiding chip producers like Intel. The document reveals that the Commerce Department will evaluate how far domestic manufacturers have evolved in meeting the demand for cutting-edge nodes. The probe solely focuses on how the US government could catalyze the process of helping out the likes of Intel Foundry producing in the nation, and it looks like, under the Trump administration, a key priority will be given to US companies that have facilities capable of delivering high-end processes, and the only name that stands out here is Intel Foundry. Another objective of the probe is to look for "the potential for export restrictions by foreign nations," which likely refers to Taiwan here, and how the nation has held the core technology within itself. While the investigation hasn't concluded anything for now, it seems like the new Commerce Department is far more aggressive regarding domestic chip industry expansion, and this will certainly help out the likes of Intel in the long run. Despite Intel Foundry's underperformance, it won't be wrong to say that the firm has positioned itself as the top US chipmaker, especially with its recent 18A process, which has made remarkable progress. Not to mention that with TSMC expanding its presence in the region, the US will ultimately have to decide whether they will rely on a foreign or domestic entity, and with the recent probe, it seems like the latter is the choice of the Trump administration. In terms of chip tariffs, Trump did announce that the recent tariff exemptions are only temporary and that they'll be included in a separate "semiconductor" tariff, which is what the Commerce Department is preparing for. Deal of the Day
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