The semiconductor (chip) supply chain, though essential, remains one of the most vulnerable aspects of U.S. national security.
President Donald Trump’s proposed 100% tariff on imported chips expected any day now could play a powerful role in bringing this vital industry back to American soil—but only if domestic firms and global competitors aren’t allowed to stall progress behind vague commitments and hollow promises.
For years, both private companies and government agencies have grown dependent on sourcing semiconductors from factories overseas, particularly in Taiwan. This trend has not only contributed to the erosion of American manufacturing jobs and harmed the middle class, but it has also created a dangerous dependency on overseas, and not domestic, demand. The flow of these critical components—used in everything from smartphones and vehicles to advanced military systems—is now at risk from natural disasters, political instability, and global conflict.
The key to reshoring semiconductor production lies in guaranteeing steady demand for chips made in the U.S. That means national policy must be structured to prioritize American-made semiconductors in both the private and public sectors. Despite recent commitments to invest in U.S. chipmaking, many domestic semiconductor fabrication plants (fabs) still operate below capacity.
President Trump has made it clear: “We must be able to build the chips and semiconductors that we need right here, in American factories… It’s a matter of economic security. It’s also a matter of national security for us.”
Still, concerning reports continue to emerge. Samsung announced delays in their $44 billion Texas chip fab reportedly because ‘there are no customers.” Texas Instruments is being pushed by Wall Street firms to scale back the construction of new plants, as they feel the future demand for those chips is not as strong as the company predicts.
To meet President Trump’s vision and safeguard a robust U.S.-based semiconductor supply chain, policymakers should act decisively with five key measures to drive domestic demand. First, we need to guarantee demand through strong tariff enforcement. The Commerce Department’s ongoing Section 232 investigation—launched in April and expected to conclude soon—is likely to reaffirm the national security risks tied to U.S. dependence on foreign chip sources. A second element of a strategy is to push major chip buyers—Apple, Samsung, Dell, HP, Sony, and others—to prioritize American fabs. Without consistent demand, U.S. manufacturing capacity will remain underused. A third plan is to restrict tariff waivers with a strict “Chip-for-Chip” policy. Waivers should only be issued when foreign imports are matched by real, measurable progress toward domestic chip production.
The last two elements are critical. The U.S. should tie import credits to project timelines. These credits must only remain valid as long as U.S. manufacturing expansion efforts stay on schedule and move toward completion and finally, we need to hold firms accountable for broken promises. If companies fail to follow through on investment pledges, they should be required to retroactively pay tariffs they previously avoided.
By staying focused and enforcing these five principles, lawmakers can strengthen the demand side of one of the most delicate and important supply chains in America. This America-First action would protect the nation from severe disruptions that could cripple both the economy and our national defense.
Mr. Keiser is a past Deputy National Security Advisor to the Trump transition team, a Senior Advisor to the House Intelligence Committee and a currently a Senior Principal at Navigators Global and a Senior Fellow at the National Security Institute.
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