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Mixed Reactions Across Asia as Trump Announces Sweeping 100% Tariff on Imported Semiconductors

Asian semiconductor markets were thrown into turbulence on Thursday following U.S. President Donald Trump’s announcement of a 100% tariff on imported chips, excluding companies manufacturing within the United States. The bold protectionist measure appears to be part of Trump’s wider push to boost domestic production and reduce reliance on foreign tech supply chains.

While Japanese semiconductor stocks plunged, key South Korean and Taiwanese players with significant U.S. investments surged, signaling a growing divide in how the tariffs are expected to impact regional tech giants.

Japanese Chipmakers Take a Hit Amid Uncertainty

Japan’s semiconductor sector bore the brunt of investor concern. Leading chip equipment manufacturer Tokyo Electron dropped over 5% in early trade, before narrowing its losses to 2.9% by late morning in Tokyo, according to LSEG data.

Other major players followed suit:

• Renesas Electronics opened down 4%
• Advantest, a critical supplier of chip-testing equipment, lost 3.3%

The Japanese market reaction reflects widespread uncertainty around the exemption criteria — particularly what qualifies as sufficient U.S. manufacturing presence to avoid the steep new tariff. With Japanese chipmakers deeply embedded in global supply chains but lacking large-scale U.S. production bases, many are now exposed to potentially severe cost burdens.

Samsung and SK Hynix Exempted, Apple Ties Strengthen Samsung’s Position

In contrast, South Korean giants Samsung Electronics and SK Hynix were reported to be exempt from the tariffs, according to South Korea’s trade envoy Yeo Han-koo, speaking on local radio.

This exemption provided a strong rebound for SK Hynix, which had initially fallen over 3%, before reversing course. Samsung Electronics rose 2.47%, buoyed by Apple’s announcement that it will source chips for iPhones and other devices from Samsung’s Texas-based fabrication plant.

Samsung has been investing heavily in U.S. chip production, and the new tariff policy could strengthen its partnership with Apple and other American tech firms seeking to reduce geopolitical risk in their supply chains.

TSMC Surges as U.S. Investment Pays Off

Taiwan Semiconductor Manufacturing Company (TSMC) — the world’s largest contract chipmaker — also opened higher, climbing more than 4%.

TSMC has made substantial investments in the U.S., including:

• A $65 billion commitment for three chip plants in Arizona
• An additional $100 billion investment announced earlier this year for expanding advanced manufacturing capacity in the U.S.

These aggressive U.S. expansion efforts appear to position TSMC well under Trump’s policy, making the company a key beneficiary of the tariff structure.

Trump’s Tariff Plan: Broad Ambition, Unclear Execution

Speaking from the Oval Office on Wednesday, Trump framed the tariff plan as a way to prioritize domestic manufacturing, stating:

“We’re going to be putting a very large tariff on chips and semiconductors... approximately 100%. But if you’re building in the United States of America, there’s no charge.”

The policy’s rollout, however, lacks specifics. It is unclear:

• What qualifies as “building in the U.S.” — is partial assembly enough?
• How much of the supply chain must be domestic to earn an exemption?
• Whether existing vs. future investments will be treated equally

Ernie Tedeschi, economist at Yale’s Budget Lab, cautioned:

“The devil is in the details. There’s no clear framework yet on how the chip tariffs will be applied in practice.”

Strategic Opportunity for Japanese Equipment Makers?

Despite the initial market shock, some experts see a potential long-term upside for Japanese semiconductor equipment suppliers.

Andrew Jackson, Head of Japanese Equity Strategy at ORTUS Advisors, noted that:

“Japanese chipmaking equipment is indispensable for most fabs, including those expanding in the U.S. This could create new export opportunities despite the tariffs.”

In other words, while Japanese chip producers may be hurt, equipment makers like Tokyo Electron could benefit as American and exempted Asian firms ramp up production in the U.S.

Winners and Losers: Scale, Strategy, and U.S. Alignment

Daniel Newman, CEO of The Futurum Group, emphasized that the early winners are the big players with deep pockets and U.S. alignment.

“These are the big wins that President Trump wants to get — Apple, Nvidia, TSMC. These companies have the most dollars to pledge and the largest projects to point to.”

Smaller semiconductor firms, particularly those without the resources to set up or expand operations in the U.S., may struggle to navigate the new environment and could face pressure to localize or partner with U.S.-based players.

Final Thoughts

Trump’s 100% chip tariff marks a radical shift in U.S. trade and industrial policy, one that rewards onshore production and punishes overseas dependence.

While the full impact will depend on policy execution and global response, the message is clear: the U.S. wants semiconductors made on American soil, and companies already investing there — like Samsung, TSMC, and Apple’s supply chain — are reaping the early rewards.

For Japanese firms, the road ahead may require adaptation, deeper U.S. engagement, or strategic realignment to remain competitive in an increasingly fragmented semiconductor world.

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