President Trump has unveiled plans to impose new tariffs on foreign production of computer chips, semiconductors, and pharmaceuticals, with the goal of revitalizing U.S. manufacturing.

During a speech at the House GOP Issues Conference at the Trump National Doral Resort, he emphasized the need for a "fair system" that would enhance American wealth and power.

Trump stated that foreign companies could avoid these tariffs by establishing operations in the U.S., promoting domestic investment.

Currently, the U.S. holds an 11-12% share of global semiconductor manufacturing, which could potentially rise to 14-15% by the end of the decade if new facilities are developed.

Despite significant funding from the CHIPS Act aimed at boosting U.S. semiconductor production, the effectiveness of the proposed tariffs in reshaping supply chains remains uncertain.

TSMC has not yet commented on Trump's tariff proposals, reflecting a cautious stance amid the evolving trade landscape.

Most semiconductor production currently occurs overseas, particularly in Taiwan, despite the U.S. being a leader in chip design.

Experts warn that tariffs might complicate efforts to increase domestic semiconductor production, as TSMC is already working on establishing a presence in the U.S.

The CHIPS Act, initiated by the Biden administration, allocated up to $52 billion for domestic semiconductor production, but experts believe this may not be enough against China's aggressive strategy.

In a related development, DeepSeek's latest AI model has shown competitive capabilities with those from OpenAI and Meta Platforms, raising concerns about China's advancements in AI despite U.S. export restrictions.

Trump's comments have led to growing skepticism in Taiwan regarding the U.S. as a reliable ally, particularly in light of increasing tensions with China.

This strategy contrasts with the previous administration's focus on subsidizing semiconductor projects, as tariffs represent a long-term gamble for reshaping the industry.