American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

US unveils 1:1 rule to boost chip production: what this means for tech giants

by admin September 26, 2025
September 26, 2025
US unveils 1:1 rule to boost chip production: what this means for tech giants

The US government is rolling out a bold new plan aimed at shifting the semiconductor industry closer to home.

Under this rule, chipmakers will need to produce as many chips inside the country as are imported from overseas, a report by The Wall Street Journal said on Friday.

The idea: curb America’s heavy reliance on foreign-made semiconductors and build a stronger, more resilient supply chain.

Companies falling short risk tariffs on their imports, a strong nudge to invest locally.

This move comes at a time when global chip shortages and geopolitical tensions have exposed vulnerabilities in technology supply chains worldwide.

A push for greater chip independence

The White House and US Commerce Department want to shore up domestic chip manufacturing, making the country less dependent on Asia and other regions.

With this 1:1 production ratio rule, businesses importing chips from abroad will have to match their imports with an equal amount made on American soil.

If they don’t, tariffs will kick in, potentially driving companies to rethink their strategies.

The motivations are clear: recent chip supply disruptions, worsened by pandemic effects and international conflicts, have hit industries from automobiles to smartphones hard.

By incentivizing local production, the government hopes to create jobs, protect national security interests, and ensure the US stays competitive in the tech race.

Secretary of Commerce Howard Lutnick emphasized that this isn’t just about economics, it’s about safeguarding critical technologies that power the modern world.

The plan also aligns with President Trump’s stance on reducing reliance on foreign imports through strong trade policies.

What this means for the chip industry?

This production mandate is expected to shake up the global chip market.

US manufacturing costs run higher than many Asian countries due to wages and facilities, so this rule could push companies to invest billions in domestic factories and infrastructure.

While that promises a boost in jobs and innovation stateside, it might also lead to higher chip prices and tighter margins.

Industry watchers see it as a balancing act: make chips locally to avoid tariffs, but keep prices competitive in a tough global market.

The US aims to significantly ramp up chip output by 2032, hoping to double or even triple current capacities. For companies, navigating these rules means reassessing supply chains, investments, and partnerships.

Some analysts worry about unintended slowdowns if firms struggle to scale US production quickly enough. Still, the policy marks a decisive step towards securing America’s technology future amid global uncertainties.

The ripple effects from this bold strategy will likely be felt across industries relying on these tiny but vital components.

The post US unveils 1:1 rule to boost chip production: what this means for tech giants appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Europe markets open higher as US tariffs force trade realignment
next post
Hackers breach US federal firewalls as ArcaneDoor cyber-espionage expands

Related Posts

BMW share price: Rolls-Royce parent forms a dangerous...

September 16, 2024

Federal regulators are probing whether Cash App leaves...

February 17, 2024

Long BANF: BancFirst Corp, Bullish Setup Points to...

January 18, 2025

Aldi to add 800 new U.S. grocery stores...

March 8, 2024

Can reselling jets made for China to Asian...

April 22, 2025

Well, that escalated quickly

February 8, 2025

KRE ETF stock has doubled: is it safe...

November 19, 2024

Rolls-Royce share price is recovering: is it a...

April 10, 2025

NuScale stock forecast: promising, but too many red...

October 17, 2024

London’s heat-stricken underground commute threatens its appeal

July 26, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Bulgaria plans for continuous oil supply for Lukoil-owned refinery after US sanctions

      October 26, 2025
    • Apple Q4 earnings preview: here’s what to expect

      October 26, 2025
    • France’s offshore wind ambitions stalled by political turmoil

      October 26, 2025
    • Europe bulletin: Zelensky calls for more weapons, Russia warns against EU sanctions

      October 26, 2025
    • US digest: Jeffries endorses Mamdani, Ford’s stock surge, US sanctions Colombian president

      October 26, 2025

    Categories

    • Business (4,373)
    • Investing (3,014)
    • Latest News (2,103)
    • Politics (1,541)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved