Trump Administration Considers Tariff Relief for Tech Giants on AI Data Center Chips
The Trump administration is reportedly preparing to grant significant tariff exemptions to major US technology corporations, including Amazon, Google, and Microsoft. According to a Financial Times report dated February 9, 2026, these exemptions would specifically apply to semiconductor chips utilized in artificial intelligence data centers. This potential policy shift is directly linked to the ongoing artificial intelligence boom and aims to support domestic technological advancement while addressing economic concerns.
Details of the Proposed Tariff Exemption Plan
The proposed framework, as outlined by the Financial Times citing an administration official, involves the US Department of Commerce crafting tariff cuts based on investments from Taiwan Semiconductor Manufacturing Company (TSMC). TSMC, the world's largest chipmaker, has committed a substantial $165 billion to construct manufacturing facilities within the United States. The White House has reportedly agreed to a $250 billion investment package for the domestic semiconductor industry, which would reduce tariffs on imports from Taiwan to 15% and provide exemptions to companies like TSMC in proportion to their US expansion plans.
How the tariff relief would operate: For semiconductor plants built in the US by Taiwanese companies, the plan allows for the tariff-free import of 2.5 times the planned capacity during the construction phase. Taiwanese chip firms with existing US facilities would be permitted to import 1.5 times their capacity without tariffs. This "rebate program" is designed to incentivize TSMC to relocate more production to American soil, enabling the company to allocate earned exemptions to its US customers when future tariffs are implemented.
Motivations and Current Tariff Landscape
The initiative appears strategically aimed at encouraging TSMC to shift a greater portion of its manufacturing operations to the United States. An administration official emphasized to the Financial Times that careful monitoring would ensure the program's integrity, preventing it from becoming a mere giveaway to TSMC. Currently, only a limited number of chips imported into the US by companies like AMD and Nvidia, which are subsequently exported to China, face a 25% tariff imposed by President Trump citing national security reasons. Chips not re-exported remain exempt from these duties.
Challenges in Relocating Semiconductor Production
The Trump administration's ambitious goal involves relocating approximately 40% of Taiwan's semiconductor production capacity to the United States. However, Taiwanese negotiators have labeled this target as "impossible" to achieve. US Commerce Secretary official Howard Lutnick previously warned that failure to shift up to 40% of Taiwan's chip supply chain to the US could result in increased tariffs for the leading chip manufacturing nation.
In a televised interview on February 8, Taiwanese Vice Premier and lead negotiator Cheng Li-chiun firmly stated that Taiwan's semiconductor ecosystem cannot be relocated. She described the ecosystem as an "iceberg" with an enormous foundation built over decades, asserting that it will only continue to expand rather than be moved. This stance highlights significant diplomatic and logistical hurdles in the administration's strategy.
Key Implications and Industry Impact
- The US government is actively working to incentivize domestic chip production while simultaneously providing economic relief to major technology firms investing in AI infrastructure.
- Tariff exemptions are directly contingent upon the investment commitments made by TSMC and other Taiwanese semiconductor companies within the United States.
- The evolving tariff strategy underscores a delicate balance between addressing national security concerns and fostering a robust, competitive AI infrastructure essential for technological leadership.
- This development could significantly reduce operational costs for tech giants like Amazon, Google, and Microsoft, potentially accelerating AI innovation and data center expansion across the country.
As of the report's publication, TSMC declined to comment on the matter, while the US Commerce Department and White House had not issued responses. Plans remain under discussion and have not been finalized or signed by President Trump, according to sources familiar with the negotiations.
