Semiconductors

Trump eyes tariffs on semiconductors in push to boost US tech manufacturing

US President Donald Trump is preparing to introduce new tariffs on semiconductor imports, aiming to shift more chip production back to the United States.

Semiconductors, or microchips, are essential components in everything from smartphones and laptops to medical devices and renewable energy systems.

Speaking aboard Air Force One, Trump said new tariff rates would be announced soon as part of a broader effort to end American reliance on foreign-made chips and strengthen national security.

The global semiconductor supply chain is heavily concentrated in Asia, with Taiwan’s TSMC producing over half of the world’s chips and supplying major companies like Apple, Microsoft, and Nvidia.

Trump’s move signals a more aggressive stance in the ongoing ‘chip wars’ with China, as his administration warns of the dangers of the US being dependent on overseas production for such a critical technology.

Although the US has already taken steps to boost domestic chip production—like the $6.6 billion awarded to TSMC to build a factory in Arizona—progress has been slow due to a shortage of skilled workers.

The plant faced delays, and TSMC ultimately flew in thousands of workers from Taiwan to meet demands, underscoring the challenge of building a self-reliant semiconductor industry on American soil.

Why does it matter?

Trump’s proposed tariffs are expected to form part of a wider investigation into the electronics supply chain, aimed at shielding the US from foreign control and ensuring long-term technological independence. As markets await the announcement, the global tech industry is bracing for potential disruptions and new tensions in the international trade landscape.

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Nvidia expands AI chip production in the US amid political pressure and global shifts

Nvidia is significantly ramping up its presence in the United States by commissioning over a million square feet of manufacturing space in Arizona and Texas to build and test its powerful AI chips. The tech giant has begun producing its Blackwell chips at TSMC facilities in Phoenix and is developing large-scale ‘supercomputer’ manufacturing plants in partnership with Foxconn in Houston and Wistron in Dallas.

The company projects mass production to begin within the next 12 to 15 months, with ambitions to manufacture up to half a trillion dollars’ worth of AI infrastructure in the US over the next four years. CEO Jensen Huang emphasised that this move marks the first time the core components of global AI infrastructure are being built domestically.

He cited growing global demand, supply chain resilience, and national security as key reasons for the shift. Nvidia’s decision follows an agreement with the Trump administration that helped the company avoid export restrictions on its H20 chip, a top-tier processor still eligible for export to China.

Nvidia joins a broader wave of AI industry leaders aligning with the Trump administration’s ‘America-first’ strategy. Companies like OpenAI and Microsoft have pledged massive investments in US-based AI infrastructure, hoping to secure political goodwill and avoid regulatory hurdles.

Trump has also reportedly pressured key suppliers like TSMC to expand American operations, threatening tariffs as high as 100% if they fail to comply. Despite the enthusiasm, Nvidia’s expansion faces headwinds.

A shortage of skilled workers and potential retaliation from China—particularly over raw material access—pose serious risks. Meanwhile, Trump’s recent moves to undermine the Chips Act, which provides critical funding for domestic chipmaking, have raised concerns about the long-term viability of US semiconductor investment.

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Lenovo unveils compact edge AI server

Lenovo has introduced the ThinkEdge SE100, a compact AI inferencing server aimed at bringing edge AI within reach for businesses of all sizes.

Rather than relying on large data centres for processing, this server is designed to operate on-site in space-constrained environments, allowing data to be processed locally instead of being sent to the cloud.

The SE100 supports hybrid cloud deployments and is part of Lenovo’s new ThinkSystem V4 family. While the V4 systems are built for AI training, the SE100 is intended for inferencing, which is less demanding and doesn’t require power-hungry GPUs.

Lenovo says the unit is 85% smaller than a typical 1U server and draws under 140W, even with GPU configurations.

Engineered to be both energy-efficient and quiet, the SE100 uses Neptune liquid cooling instead of traditional fans, making it suitable for public spaces. Its design also helps extend system health and lifespan by reducing air flow needs and lowering operating temperatures.

Lenovo’s vice president of infrastructure products, Scott Tease, stated the SE100 is a cost-effective solution that simplifies AI deployment at the edge.

Its flexible design adapts to diverse business needs, offering low-latency, high-performance inferencing without the complexity or expense of full-scale AI infrastructure.

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Trump’s tech tariffs spare smartphones, computers and other electronics

President Donald Trump’s administration has granted exemptions from steep tariffs on smartphones, laptops, and other electronics, providing relief to tech giants like Apple and Dell. 

Announced on 5 April 2025 by US Customs and Border Protection, the exemptions cover 20 product categories, including semiconductors, and exclude these goods from Trump’s 10% baseline tariffs on non-Chinese imports, easing costs for items like iPhones made in India. 

Wedbush Securities analyst Dan Ives hailed the move as ‘the most bullish news’ for the tech sector, coinciding with efforts by companies like Apple, which has shipped 1.5 million iPhones from India to sidestep tariffs.

However, the exemptions don’t fully shield tech from Trump’s trade war. His 125% reciprocal tariffs on Chinese imports remain, alongside earlier 20% duties tied to the fentanyl crisis, and a new national security probe into semiconductors looms. 

Trump, speaking on 9 April, teased more details while claiming the US is reaping tariff revenue, but the decision hints at his awareness of inflation risks, with iPhone prices potentially hitting $2,300 under full tariffs. 

The partial reprieve reflects Trump’s balancing act between trade promises and economic stability, especially after his campaign focused on lowering prices amid inflation concerns.

The backdrop is a volatile global market, with China retaliating by matching Trump’s 125% tariffs, sending US stocks on a rollercoaster and pushing gold to record highs. 

Trump’s cosy ties with tech CEOs like Apple’s Tim Cook, who have embraced him since his 20 January inauguration, contrast with his tariff-driven agenda, which has sparked recession fears and Republican criticism ahead of next year’s midterms. 

The exemptions offer tech a breather, but the broader US-China trade conflict threatens supply chains and global stability. 

This tariff carve-out underscores Trump’s high-stakes gamble: reshaping trade to favour American interests while risking economic fallout at home. 

With smartphones and laptops leading US imports from China at $41.7 billion and $33.1 billion in 2024, the exemptions may temper consumer price hikes, but the looming semiconductor probe and escalating tensions signal more turbulence ahead. 

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AI boom drives TSMC revenue surge

Taiwan Semiconductor Manufacturing Co. (TSMC) reported record-breaking sales for March and the first quarter of the year, driven by robust demand for AI technologies.

March revenue reached NT$285.96 billion (US$8.70 billion), while quarterly revenue climbed to NT$839.25 billion, reflecting a 41.6 percent year-on-year increase.

The chipmaker confirmed that the sales performance aligned with internal expectations, attributing the surge largely to continued global investment in AI development.

Despite a temporary production setback caused by the Jan. 21 earthquake in southern Taiwan, which forced the scrapping of some wafers, the company’s growth momentum remained strong.

TSMC is set to provide further financial details and its second-quarter outlook at an investor conference on 17 April. Meanwhile, the company has announced an additional US$100 billion in United States investment, building on its ongoing US$65 billion expansion in Phoenix, Arizona.

However, its stock price has dropped below NT$1,000, closing Thursday at NT$863, amid a strengthening US dollar and broader economic uncertainties.

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Google pushes AI limits with Ironwood

Google has announced Ironwood, its latest and most advanced AI processor, marking the seventh generation of its custom Tensor Processing Unit (TPU) architecture.

Designed specifically for the growing demands of its Gemini models, particularly those requiring complex simulated reasoning, which Google refers to as ‘thinking’, Ironwood represents a significant leap forward in performance.

Instead of relying solely on software updates, Google is highlighting how hardware like Ironwood plays a central role in boosting AI capabilities, ushering in what it calls the ‘age of inference.’

However, this TPU is not just faster but dramatically more scalable. Ironwood chips will operate in tightly connected clusters of up to 9,216 units, each cooled by liquid and linked through an enhanced Inter-Chip Interconnect.

These chips can also be deployed in smaller 256-chip servers, offering flexibility for cloud developers and researchers.

Instead of offering modest improvements, Ironwood delivers a peak throughput of 4,614 teraflops per chip, alongside 192GB of memory and 7.2 terabits per second of bandwidth, making it vastly superior to its predecessor, Trillium.

Google says this advancement is more than a performance boost, it’s a foundation for building AI agents that can act on a user’s behalf by gathering information and producing outputs proactively.

Rather than functioning as passive tools, AI systems powered by Ironwood are intended to behave more independently, reflecting a growing trend toward what Google calls ‘agentic AI.’

While Google’s comparison to supercomputers like El Capitan may be flawed due to differing hardware standards, there’s no doubt Ironwood is a substantial upgrade. The company claims it is twice as powerful per watt as the v5p TPU, even if the newer Trillium (v6) chip wasn’t included in the comparison.

Regardless, Ironwood is expected to power the next generation of AI breakthroughs, as the company prepares to move beyond its current Gemini 2.5 model.

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Minister urges Indian start-ups to shift focus from ice cream to semiconductors

India’s Commerce Minister Piyush Goyal has sparked controversy by questioning whether Indian start-ups should focus on semiconductor chips instead of gluten-free ice creams and food delivery apps.

Speaking at a start-up conference, he compared India’s consumer internet boom unfavourably with China’s advances in robotics and AI, urging entrepreneurs to pursue more ambitious tech innovations instead of safe lifestyle products.

While acknowledging the position of India as the world’s third-largest start-up ecosystem, Goyal faced pushback from founders who argued consumer apps often evolve into tech pioneers.

Quick-commerce CEO Aadit Palicha noted that companies like Amazon began as consumer platforms before revolutionising cloud computing. However, investors admitted deep-tech struggles for funding, with most capital chasing quick-return ventures instead of long-term hardware or AI projects.

The debate highlights India’s innovation crossroads. Despite having 4,000 deep-tech start-ups, projected to reach 10,000 by 2030, they attracted just 5% of 2023 funding instead of China’s 35%.

Experts suggest the government could help by offering tax incentives instead of criticism, and building research bridges between academia and start-ups to compete globally in advanced technologies

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Taiwan warns of economic impact after US tariff decision

The United States has imposed a 32 per cent tariff on Taiwanese exports, with semiconductors notably exempt from the new trade restrictions.

Taiwan, a major supplier of advanced electronics, has strongly condemned the move, calling it unfair and harmful to economic ties. Nearly a quarter of Taiwan’s exports go directly to the United States, with electronic components and consumer devices making up a significant share.

President Donald Trump has previously criticised Taiwan’s dominance in the semiconductor industry and threatened tariffs on the sector. While chips remain untouched for now, industry experts warn that tariffs could still be introduced in the future.

Taiwan Semiconductor Manufacturing Company (TSMC) recently pledged a $100 billion investment in the US to expand its Arizona operations, a move praised by Trump. Other chipmakers, including South Korea’s Samsung and SK Hynix, are also being urged to increase their investments in American facilities.

Government officials and businesses in Taiwan are now working to mitigate the impact of the tariffs. President Lai Ching-te has signalled interest in expanding trade ties with the US, including potential purchases of natural gas.

The Taiwanese government has lodged a formal protest with Washington, arguing that the tariffs undermine economic cooperation. Analysts suggest that Taiwan may have underestimated Trump’s hard-line trade policies, expecting more favourable treatment after recent investment commitments.

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Lip-Bu Tan outlines his vision for Intel’s future

Intel’s newly appointed chief executive, Lip-Bu Tan, has pledged to restore customer trust and strengthen the company’s engineering-driven culture.

Speaking at the Intel Vision conference, he assured customers that the next-generation Panther Lake chips would launch this year, continuing Intel’s progress in advanced chipmaking.

With a background in electronic design automation, Tan brings extensive industry experience but is not a traditional semiconductor executive. He has served as CEO of Cadence Design Systems and was previously a venture capitalist and an Intel board member.

Acknowledging Intel’s recent struggles, he vowed to refine strategies, spin off non-core businesses, and focus on AI and software-driven growth.

Tan promised to lead Intel’s expansion into third-party chip manufacturing and collaborate with policymakers to advance its foundry business.

Emphasising his commitment to turning the company around, he urged customers to be ‘brutally honest’ about their expectations, stating, ‘We may not be perfect in the beginning, but eventually, I will make it perfect.’

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US fabs to catch up with Taiwan tech

TSMC says future chip factories in the US will take two years or less to complete, a big step forward from the five years needed for its first Arizona plant. The goal is to narrow the technology gap with its cutting-edge Taiwanese fabs.

While the first US fab makes chips on a 4nm process, TSMC aims to start 3nm production in 2028 and reach 2nm ‘before 2030.’ This would bring American output closer to the most advanced nodes used in Taiwan.

For Apple, which relies heavily on TSMC, the move reduces geopolitical risks tied to China–Taiwan tensions. Critics, however, point out that all R&D remains in Taiwan, limiting the US’s chances of true semiconductor leadership.

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