Trump has sparked significant discussions around tariffs with his latest remarks directed at TSMC, stating, “All I did is say if you don’t build your plant here you’re gonna pay a big tax… 25, maybe 50, maybe 75, maybe 100%.”

This statement was made during an event for the Republican National Congressional Committee and appears to highlight a tough stance toward the chip manufacturing giant TSMC. It follows Trump’s broader tariff strategies aiming to encourage domestic manufacturing.

His declaration aims to pressure TSMC into relocating production to the U.S., emphasizing the potential economic impact of such a decision on both the company and domestic tech manufacturing.

While TSMC is undoubtedly significant in the semiconductor space, having announced plans for a massive investment in the U.S. estimated at $100 billion—prior commitments of $65 billion were already in place—the details surrounding these tariffs remain a contentious topic.

Despite the tariffs being primarily seen as a tool of negotiation, they may still have repercussions on U.S. consumers as these taxes are reflected in retail prices.

TSMC currently produces chips for leading tech firms, including Nvidia, Apple, AMD, and Intel, and any shifts could dramatically impact tech supply chains.