In a significant development for the technology sector, Apple Inc. and Taiwan Semiconductor Manufacturing Company (TSMC) have successfully secured exemptions from the recently announced 100% import tariff on semiconductors by President Donald Trump. This exemption comes as both companies have reaffirmed and expanded their manufacturing investments within the United States.
Trump’s Tariff Announcement and Exemption Criteria
On August 6, 2025, President Trump declared a 100% tariff on imported semiconductors, aiming to incentivize companies to relocate chip production to American soil. However, he specified that companies actively building or committed to building manufacturing facilities in the U.S. would be exempt from these tariffs. During a White House press event, Trump stated, If you’re building in the United States of America, there’s no charge. Even though you’re building and you’re not producing yet. ([cnbc.com](https://www.cnbc.com/2025/08/06/trump-tariffs-chips-companies.html?utm_source=openai))
Apple’s Strategic Investment and Exemption
Apple, heavily reliant on overseas chipmakers, promptly secured an exemption by committing an additional $100 billion to U.S.-based manufacturing, elevating its total domestic investment pledge to $600 billion over four years. This investment encompasses various initiatives, including:
– Corning Partnership: Apple plans to spend $2.5 billion with Corning to manufacture all iPhone and Apple Watch glass in Kentucky. ([ainvest.com](https://www.ainvest.com/news/apple-100-billion-investment-sparks-market-rally-offers-glimpse-trump-tariff-carveout-framework-2508?utm_source=openai))
– Semiconductor Production: Collaborations with Texas Instruments and Applied Materials aim to expand semiconductor production in Texas and Utah. ([ainvest.com](https://www.ainvest.com/news/apple-100-billion-investment-sparks-market-rally-offers-glimpse-trump-tariff-carveout-framework-2508?utm_source=openai))
– Supply Chain Expansion: Strengthening relationships with U.S.-based firms like GlobalFoundries, Amkor, and Broadcom to bolster the domestic supply chain. ([ainvest.com](https://www.ainvest.com/news/apple-100-billion-investment-sparks-market-rally-offers-glimpse-trump-tariff-carveout-framework-2508?utm_source=openai))
Apple CEO Tim Cook emphasized the company’s commitment, stating, We’re a proud American company. He also presented President Trump with a commemorative U.S.-made glass plaque during the announcement. ([washingtonpost.com](https://www.washingtonpost.com/technology/2025/08/06/trump-apple-investment-chips-tariffs-cook/?utm_source=openai))
TSMC’s U.S. Expansion and Exemption
TSMC, the world’s leading chip manufacturer and a key supplier to Apple, also secured an exemption due to its substantial investments in the U.S. The company is constructing three fabrication plants, two advanced packaging facilities, and a new R&D center in Arizona, with a total investment now standing at $165 billion. ([cincodias.elpais.com](https://cincodias.elpais.com/opinion/2025-08-08/tsmc-y-samsung-no-tienen-consuelo.html?utm_source=openai))
Liu Chin-ching, a top official in Taiwan’s National Development Council, confirmed TSMC’s exemption, stating, TSMC is exempted from the chip tariffs because it has set up plants in the US. ([cincodias.elpais.com](https://cincodias.elpais.com/opinion/2025-08-08/tsmc-y-samsung-no-tienen-consuelo.html?utm_source=openai))
Market Reactions and Broader Implications
The exemptions for Apple and TSMC led to immediate positive market reactions. TSMC’s shares surged nearly 5% to a record NT$1,180, and the Taiwan dollar appreciated as much as 0.9% against the U.S. dollar. Apple’s stock also rose 2.9% in premarket trading following the announcement. ([irishtimes.com](https://www.irishtimes.com/business/markets/2025/08/07/apple-leads-surge-in-global-tech-shares-after-trump-tariff-relief/?utm_source=openai))
Other major semiconductor exporters are assessing the impact of the tariff. South Korea’s Samsung, with chip fabrication facilities in Texas, appears well-positioned to avoid penalties and is part of Apple’s American Manufacturing Program. ([ainvest.com](https://www.ainvest.com/news/apple-100-billion-investment-sparks-market-rally-offers-glimpse-trump-tariff-carveout-framework-2508?utm_source=openai))
However, smaller companies without the resources to invest in U.S. manufacturing may face significant challenges. The lack of clear guidelines has left businesses uncertain about which chips and components might be subject to tariffs, raising concerns about cost increases on products like cars and consumer electronics. ([apnews.com](https://apnews.com/article/4fdca3d1bd93c18a657a2905b037eb29?utm_source=openai))
Conclusion
The exemptions granted to Apple and TSMC underscore the U.S. administration’s strategy to encourage domestic manufacturing through substantial investments. While these exemptions provide relief to major players, the broader tech industry continues to navigate the complexities and uncertainties introduced by the new tariff policies.
