Trump chip tariff threat throws wrench into global supply network

Push by countries for all-domestic production could result in glut

20250414N Chips

Construction of chipmaking facilities is moving forward rapidly amid economic decoupling. (Photo by Nikkei)

RYO MUKANO and KOSUKE SHIMIZU

TOKYO/PALO ALTO, U.S. -- The Trump administration's steps toward extending its tariffs to the semiconductor industry threaten to upend a complex cross-border supply chain as the U.S. and other countries push to bring everything within their own borders, a development that could lead to oversupply.

The U.S. on Monday launched an investigation into chip imports that could pave the way for tariffs on semiconductor devices and chipmaking equipment.

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