Trump Says US Will Have 50% Of Chip Industry By The Time He Leaves Office, Threatens Tariffs Of Over 200% Otherwise

• Trump added that the U.S. is leading AI “by a lot,” while highlighting his administration’s efforts in reshoring manufacturing.
• He said that many of the chip manufacturing facilities are planned for Arizona and Texas, and that these plants are expected to begin operations over the next year to a year and a half.
• Trump also criticized the Biden administration for handing out billions of dollars to companies that then failed to build the factories they had promised.

President Donald Trump on Tuesday said that the U.S. will have 50% of the chip industry by the time he leaves office at the end of the current term in 2029.

Addressing reporters during a bilateral meeting with the Emir of the State of Qatar, Trump slammed the Biden administration’s CHIPS Act, calling it a disaster.

He also threatened to impose tariffs exceeding 200% if chip makers failed to reshore semiconductor manufacturing to the U.S.

“We have a different system. We have a system that if they don’t build… they have to pay tariffs of upwards of 200%. They don’t have to pay anything for a little while,” he said.

Trump Says US Is Leading AI ‘By A Lot’

Trump added that the U.S. is leading AI “by a lot,” while highlighting his administration’s efforts in reshoring manufacturing. “We’re building more than we’ve ever built in the history of our country. No country has ever built… what we’re doing right now, no country has ever been able to do,” he said.

Trump highlighted that many chip manufacturing facilities are planned for Arizona and Texas and that these plants will open over the next year or year and a half. “We were the king of chips, and then it got stolen from us. We went from being the king to basically having no chip business,” he added.

The U.S. President also criticized the Biden administration for handing out billions of dollars to companies that then failed to build the factories they had promised.

Which Chipmakers Are Building Or Expanding US Facilities?

Trump’s comments on reshoring the semiconductor industry come amid efforts by several large chipmakers to either build new facilities or expand existing ones.

This includes Intel Corp. (INTC), in which the U.S. government holds a 9.9% stake. Intel is investing more than $32 billion to build two new chip factories and modernize an existing fabrication facility in Arizona. The company also plans to invest over $36 billion in Oregon and more than $4 billion in New Mexico, in addition to a greenfield investment of over $28 billion in Ohio.

Taiwan Semiconductor Manufacturing Co. (TSM) chose Arizona for its first advanced chipmaking facility in the U.S. in 2020, with a $12 billion investment that was subsequently increased to $165 billion.

Micron Technology Inc. (MU) has earmarked about $200 billion to expand its chipmaking facilities in Idaho, New York, and Virginia.

Meanwhile, Texas Instruments Inc. (TXN) has established a new fab in Texas, and Wolfspeed Inc. (WOLF) is expanding its silicon carbide semiconductor manufacturing facility in North Carolina.

The S&P 500 ETF (SPY) is up 26% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 41%.

The iShares Semiconductor ETF (SOXX) is up 184% during this period, while the VanEck Semiconductor ETF (SMH) is up 152%.

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