Global semiconductor markets reacted sharply on Thursday after U.S. President Donald Trump announced a sweeping 100% tariff on imported chips and semiconductors, aimed at pushing companies to manufacture within the United States. While Japanese chipmakers bore the brunt of the news, major players like Samsung and TSMC saw gains thanks to their ongoing investments in U.S.-based production.
Japanese Chip Stocks Slide
Japanese semiconductor firms opened lower across the board. Tokyo Electron dropped over 5% before trimming losses to trade 2.9% lower by mid-morning. Renesas Electronics and Advantest also slipped, falling 4% and 3.3% respectively, according to LSEG data.
The sell-off came amid uncertainty over the scope of the tariffs and how much U.S. production is required to qualify for an exemption.
Samsung and TSMC Rally
In contrast, South Korean and Taiwanese chip giants gained ground.
Samsung Electronics shares rose 2.47% after Apple announced it would source chips from Samsung’s facility in Texas for its iPhones and other devices. SK Hynix, which initially dropped more than 3%, rebounded during the session. South Korea’s trade envoy, Yeo Han-koo, said Samsung and SK Hynix appeared to be exempt from the tariff, though no formal details were provided.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, jumped over 4% in early trade. The company has made aggressive moves to expand U.S. operations, including a $65 billion investment in three new fabs in Arizona, followed by an additional $100 billion commitment announced in March.
Tariff Policy Still Lacks Clarity
President Trump confirmed the 100% tariffs during an Oval Office briefing on Wednesday. “We’re going to be putting a very large tariff on chips and semiconductors. But if you’re building in the United States of America, there’s no charge,” he said.
However, specifics on how much domestic production qualifies a company for exemption remain unclear. Economists and analysts have warned that the lack of a defined framework could complicate compliance and trade logistics.
Ernie Tedeschi of Yale’s Budget Lab noted, “The devil is in the details,” cautioning that the announcement left too many unanswered questions.
Possible Long-Term Upside for Japanese Equipment Makers
While Japanese semiconductor stocks stumbled in early trading, some analysts believe the long-term impact could be more favorable. Andrew Jackson of ORTUS Advisors suggested that Japanese chipmaking equipment—essential for advanced semiconductor production—may see higher demand as U.S.-bound manufacturing ramps up.
Winners and Losers
Industry observers say the biggest tech firms stand to benefit most. Daniel Newman, CEO of The Futurum Group, said companies like Apple, Nvidia, and TSMC are best positioned due to their financial strength and existing U.S. commitments.
“These are the big wins that President Trump wants to get,” Newman said. “Smaller firms that don’t have the same scale or leverage will be left negotiating their place in the new trade environment.”
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