chip imports under scrutiny: what's next for nvidia, tsmc, and asml?

2025-04-16 general

Washington, Wednesday, 16 April 2025.
the us commerce department has launched a section 232 investigation into semiconductor imports and manufacturing equipment. this probe, citing national security concerns, could trigger new tariffs and trade restrictions. nvidia, tsmc, and asml are among the companies potentially affected. the investigation aims to assess the feasibility of boosting domestic semiconductor production. it will also examine the necessity of trade measures, including tariffs, to safeguard national security. trump indicated that new tariff rates on imported semiconductors could be announced soon. the commerce department is accepting public comments for the next three weeks.

market reaction and investor sentiment

The announcement of the investigation has already impacted stock performance [3]. Apple’s stock initially dipped but closed up by 2.21%, while Nvidia’s shares fell by 0.2% [3]. Investors are concerned that tariffs could disrupt supply chains [3]. These disruptions could increase costs for consumers. The tariffs may also influence the global production landscape for semiconductors and pharmaceuticals [3]. The investigation, initiated under Section 232 of the Trade Expansion Act, could last up to 270 days [1][3]. However, the results may be expedited, as indicated by Trump’s team [3].

potential impact on ai hardware

The scope of the investigation is broad, encompassing traditional and advanced chips, manufacturing equipment, and downstream products containing semiconductors [4][3]. This could affect companies exporting microprocessors and related products to the U.S [3]. A key area of concern is AI hardware, as the U.S. imports a significant portion from Taiwan and Mexico [3]. While AI servers imported from Mexico have been shielded by the USMCA, the future remains uncertain [3]. The critical question is whether tariffs will target the entire product or only the foreign chip components within it [3].

expert opinions and industry response

Commerce Secretary Howard Lutnick suggested that tariffs on semiconductors and electronics could be implemented within a couple of months [1]. These tariffs are intended to encourage domestic production of essential goods [5]. Nvidia has already announced plans to build factories in the U.S. to produce AI supercomputers [1]. This move aligns with the broader effort to onshore the semiconductor supply chain, supported by initiatives like the $280 billion CHIPS and Science Act [1]. The investigation will assess the feasibility of increasing domestic semiconductor capacity and reducing reliance on imports [4].

pharmaceuticals and broader implications

The investigation extends beyond semiconductors to include pharmaceuticals and their ingredients [1]. This marks a departure from the historical protection afforded to the pharmaceutical industry in trade matters [3]. The probe will scrutinize all drugs, generic and non-generic, along with their essential components [3]. Pharmaceutical companies, including Merck and Eli Lilly, may face significant challenges [3]. The move could particularly affect countries like Ireland, which has a substantial trade surplus with the U.S. driven by the pharmaceutical sector [3].

Bronnen

section 232 trade investigation