Big Tech May Get Chip Tariff Breaks

This article first appeared on GuruFocus.

The U.S. is looking for a way to protect Big Tech’s AI buildout without blowing up its own trade strategy, and that could mean carving out chip tariff exemptions for companies like Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOG), and Microsoft (NASDAQ:MSFT).

According to the Financial Times, the Commerce Department is considering a plan that would shield U.S. hyperscalers from upcoming chip tariffs, as long as those exemptions are tied to investment commitments by Taiwan Semiconductor Manufacturing Company. The goal is to keep AI data center projects moving while still nudging more chip production onto U.S. soil.

President Donald Trump has leaned on tariff threats to push domestic manufacturing, but officials have so far avoided blanket tariffs on Taiwanese chips that could badly disrupt the AI supply chain. Under the proposal, TSMC would be allowed to allocate exemptions to its U.S. customers, creating a direct incentive to expand production locally.