The Trump administration is going after semiconductor imports |

In its latest bid to boost semiconductor production in the U.S., the Trump administration isreportedly consideringaratio-based approach that would penalize domestic manufacturers with tariffs if they don’t produce enough chips.

Theadministration is weighing a policy that would mandateU.S. semiconductor companies to manufacture the same number of chips in theU.S. as their customers import from overseas manufacturers, The Wall Street Journal reported, citing anonymous sources.

Companies thatdon’tcomply withthis 1:1 ratio will be subject totariffs, the report said, though the timeline to achieve this ratio isn’t clear.

President Donald Trump has beentalking aboutimposing tariffs on the semiconductor industrysince the beginning of August.

Such a ratio-based approach would be unusual if the administration wants to achieve its goal of bringing semiconductor manufacturingback stateside.It could eventually lead to more domestic semiconductor production, but it hasthe potential tohurt theU.S. chip industry until manufacturing ramps up to meet the immense demand.

Getting domestic chip manufacturingplants off the ground is neither a small nor a fast endeavor.Intel’s Ohio plant, originally slated to open this year, has beendelayedmultiple times andis nowtargeting a launch in 2030.

Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) in March said it is committing $100 billion over the next four years for building infrastructure to support chip production plants in the U.S., though it was light on details.