Apple and Taiwan Semiconductor Manufacturing Co. (TSMC) will not face the 100% import tariff on semiconductors announced by President Donald Trump. Both companies secured exemptions after reaffirming or expanding their manufacturing investments in the United States. Trump confirmed Apple’s exemption after the company committed an additional $100 billion to US-based manufacturing and presented him with a token of appreciation.
Trump’s Tariff Threat and Apple’s Exemption
On Wednesday, Trump announced plans to impose a 100% tariff on imported semiconductors. He framed the move as a push to bring chip production back to American soil. But he also made clear that companies investing in US manufacturing would not be affected. “If you’re building in the United States of America, there’s no charge,” he said. “Even though you’re building and you’re not producing yet.”
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Apple, which relies on overseas chipmakers, quickly secured an exemption. Trump cited the company’s major investment plans and its visible support as the reason. “The good news for companies like Apple is if you’re building in the United States, or have committed to build, without question, committed to build in the United States, there will be no charge,” he said.
TSMC Avoids Tariff, Taiwan Market Responds
TSMC, the world’s leading chip manufacturer and Apple’s key supplier, also confirmed its exemption from the tariffs. The company pointed to its ongoing expansion in Arizona, where it is building three fabrication plants, two advanced packaging facilities, and a new R&D center. The total investment now stands at $165 billion.
According to Bloomberg, Liu Chin-ching, a top official in Taiwan’s National Development Council, said Thursday that TSMC would not be subject to the tariffs due to its presence in the US. “TSMC is exempted from the chip tariffs because it has set up plants in the US,” Liu said at a press briefing in Taipei.
The exemption triggered immediate market response. TSMC’s shares jumped nearly 5% to a record NT$1,180. The Taiwan dollar also rose as much as 0.9% against the US dollar. TSMC alone makes up around 40% of Taiwan’s main stock index, and its performance helped lift the broader market.
Regional Players Weigh the Fallout
Other major semiconductor exporters are still trying to determine how the tariff will affect them. South Korea’s Samsung, with chip fabs in Texas, appears to be in a strong position to avoid penalties. The company is also part of Apple’s “American Manufacturing Program.”
Malaysia, another major chip exporter, has reached out to Washington seeking clarification. Prime Minister Anwar Ibrahim said the domestic chip industry would likely avoid heavy impact since most companies operating there are either US-based or continue to invest in the American market.
Liu added that Taiwan’s government is in ongoing talks with the US to address remaining trade concerns. Despite the tariff risk, Taiwan still expects 3.1% economic growth in 2025, backed largely by tech exports. “Investors had been apprehensive while awaiting the tariff rate,” Khoon Goh, head of Asia research at ANZ, told Bloomberg. “But exemptions for Taiwan’s largest company have allayed concerns.”
The Biden administration recently imposed a separate 20% tariff on goods from Taiwan. However, it made clear that semiconductors would be treated as a special category. This is still higher than the 15% tariffs negotiated by Japan and South Korea, Taiwan’s closest regional competitors.
As the dust settles, one thing is clear: companies with a footprint in US manufacturing are better positioned to weather trade policy shifts. For Apple and TSMC, their bets on American soil just paid off.
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