The Trump tariffs could financially hit Apple's chip production partnership with TSMC, after the President insisted the import taxes will be applied to semiconductors and other specific industries in the near future.

Apple is expanding its US-made chip roster, but according to TSMC’s CEO, the most modern chips will continue being manufactured elsewhere.

Taiwan's government has been swift to respond to the talk of huge tariffs by the recently inaugurated 47th president of the United States.

Taiwan Semiconductor Manufacturing Company (TSMC) first announced its plans to build an “advanced semiconductor manufacturing fabrication” facility in Arizona in early 2020, committing to a $12 billion investment in Phoenix that it later increased to a staggering $40 billion when it committed to a second facility in the state.

U.S. President Donald Trump plans to impose tariffs on imported computer chips, pharmaceuticals and steel, he said on Monday, to push companies to manufacture more in the United States. The comments mark the latest in a number of trade-related threats unleashed by Trump in recent days.

The tariffs would ensnare cutting-edge smartphone and PC-related chips for Apple, AMD and Nvidia if enacted. But Trump is betting his plan will bring more chip production to the US.

Calling Biden’s CHIPS Act incentives ‘ridiculous,’ he claimed companies will build new plants in the US to avoid higher taxes and called DeepSeek’s AI a ‘positive.’