What Are Semiconductors, and Why Is Trump Targeting Them?
The silicon material along with microchips and integrated circuits have their own designation as semiconductors. Doping creates a process which controls electrical conductivity to make semiconductors function as switches that transition between conducting and insulating modes. Modern computing relies on binary code consisting of 0s and 1s which semiconductors enable them to process. The technology sector depends on semiconductors to operate smartphones and laptops and car electronics like remote keys and sensors as well as internet infrastructure devices such as routers and switches. Sustainable energy systems and healthcare devices that include wind turbines and solar panels and pacemakers and insulin pumps use semiconductors.
The worldwide semiconductor production relies heavily on Taiwan as the Taiwan Semiconductor Manufacturing Company (TSMC) creates more than half of all chips globally. The semiconductor industry depends on TSMC for supplying critical components to Nvidia and Apple and Microsoft while functioning as an essential industry connector. South Korea’s Samsung is the next largest player. The high concentration of semiconductors has triggered a intense competition between the U.S. and China known as the “chip wars” regarding technological superiority. The geopolitical importance of Taiwan increases because the United Kingdom and the United States and Europe and China all depend on Taiwan for semiconductors.
The current presidential focus on semiconductors by Donald Trump emerges from his initiative to make the United States self-sufficient regarding manufacturing. During his second term President Trump launched “reciprocal” tariffs that aim to establish domestic production. The White House declared that smartphones and computers along with specific electronics will be exempt from tariffs which would include a 125% tax on Chinese imports. Trump made a change before continuing with his announcement from Air Force One that the administration would impose tariffs on imported semiconductors. During his statement Trump declared his goal to manufacture chips along with semiconductors domestically because it will boost economic and national security. Through a National Security Tariff Investigation Trump announced on April 13 that the U.S. would study the electronics supply chain while making sure to remain independent from China and other countries.
According to the Trump administration foreign dependence on semiconductor chips creates security threats because it can cause supply interruptions and allow spy activities. He established domestic manufacturing incentives to decrease national exposure to threats while creating employment in the U.S. The United States government has spent considerable amounts to pursue this objective. Under previous presidential leadership the CHIPS Act received congressional approval which dedicated billions to attract manufacturers to operate within U.S. borders. The Arizona factory expansion by TSMC received $6.6 billion in funding from the U.S. government but construction faced delays because of insufficient skilled local workers. TSMC solved this problem by recruiting thousands of Taiwanese employees yet this move showed the difficulties of creating a strong domestic workforce.
The transition of the semiconductor industry to U.S. territory proves difficult despite current initiatives. Taiwan leads the industry because it has built up decades of skilled expertise and affordable infrastructure that proves difficult to duplicate at a fast pace. The application of tariffs presents potential challenges to U.S. consumers and businesses that need affordable semiconductor chips because it may disrupt various sectors including technology and automobiles. Trump’s strategy demonstrates a wider national drive to establish technological independence while safeguarding national security through economic and defense means. The semiconductor sector stands at a critical point because ongoing investigations will determine its future implications for trade relations and innovation across the world.
