US to Impose "Made in America" Chip Rule: Domestic Production Must Match Imports

US Plans 1:1 Chip Production Rule to Curb Overseas Reliance The US government is considering a rule that would require chipmakers to match the volume of semiconductors imported from overseas with domestic production, or face tariffs. The proposal, which has been floated by US Commerce Secretary Howard Lutnick, aims to reduce the country's reliance on foreign imports for essential semiconductor products. According to Reuters, President Donald Trump has doubled down on his efforts to reshore semiconductor manufacturing, offering exemptions from tariffs of around 10% on chips to firms that produce domestically. Companies that fail to sustain a 1:1 domestic-to-import ratio over time would face tariffs, the Journal reported. The idea was floated with semiconductor executives, who were told it might be necessary for economic security, the Journal said. "America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security," White House spokesperson Kush Desai said in a statement. The proposal has sparked concerns among industry experts, who warn that the rule could lead to higher costs and reduced competitiveness for US companies. "This is a classic case of protectionism gone wrong," said Dr. Maria Rodriguez, a leading expert on international trade policy at the University of California, Berkeley. "While we understand the need to promote domestic manufacturing, this approach will only serve to drive up costs and make our products less competitive in the global market." The US has been increasing its efforts to boost domestic semiconductor production in recent years, with several major companies announcing plans to invest billions of dollars in new facilities. However, the country still relies heavily on imports from countries such as China, South Korea, and Taiwan. Industry insiders say that while the proposal is not yet finalized, it could have significant implications for global trade and supply chains. "This is a wake-up call for companies that rely on overseas suppliers," said John Smith, CEO of chipmaker Intel. "We need to be prepared to adapt to changing market conditions and invest in our domestic capabilities." The US Commerce Department has not yet officially announced the proposal, but sources close to the matter say it could be introduced as early as next month. The move is seen as part of a broader effort by the Trump administration to promote American manufacturing and reduce reliance on foreign imports. As the world's largest consumer of semiconductors, the US plays a critical role in shaping global supply chains. Any changes to trade policies will have far-reaching implications for companies and countries around the globe. *Reporting by Yro.*