US plans 1:1 chip production rule to curb overseas reliance, WSJ reports

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(Reuters) -The U.S. is planning to ask chipmakers to manufacture at home as many semiconductors as their customers import, aiming to curb reliance on overseas supply, the Wall Street Journal reported on Friday.

The Trump administration would levy tariffs on firms that do not sustain a 1:1 ratio over time, the report said, citing people familiar with the plan.

The plan stems from President Donald Trump’s remarks last month that tech firms manufacturing domestically could avoid roughly 100% tariffs on semiconductors.

The move, tied to Trump’s efforts to revive U.S. manufacturing, has motivated international companies to invest more, sending billions into the country.

U.S. Commerce Secretary Howard Lutnick floated the idea with semiconductor executives, telling them 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,” the newspaper cited White House spokesperson Kush Desai as saying, adding that any reporting about policymaking should be treated as speculative, unless officially announced.

The White House and the U.S. Commerce Department did not immediately respond to requests for comment.

Under the plan, a company pledging to make chips in the U.S. would receive credit for that pledged volume, allowing it and its customers to import without tariffs until the plant was completed, with initial relief to help firms ramp capacity, the report said.

(Reporting by Shivani Tanna and Ruchika Khanna in Bengaluru; Editing by Kate Mayberry and Stephen Coates)