U.S. Semiconductor Probe Findings to Land by Mid-August

- Potential tariffs on foreign semiconductors threatening global tech supply chains. - Investigation underscoring security concerns and the push for domestic chip production. The U.S. government is preparing to announce the findings of its Section 232 national security investigation into semiconductor imports, with results anticipated before mid-August. The probe examines the risks of the country’s dependence on foreign-made chips and whether this reliance threatens national security. If the probe identifies such risks, the government could introduce tariffs, which would reshape global trade dynamics and increase production costs in the tech industry. In a related development, Mitrade reported on July 28, 2025, that President Donald Trump and European Commission President Ursula von der Leyen reached a new U.S.-EU trade agreement aimed at mitigating potential fallout from the investigation. The deal introduces a 15% generic tariff on most EU imports and a 25% rate on European automobiles, while exempting strategic goods like semiconductor equipment. According to the report, Commerce Secretary Howard Lutnick noted that the EU sought this comprehensive agreement to “resolve all things at one time.” The semiconductor probe is part of the Trump administration’s broader strategy to use tariffs to enhance domestic manufacturing in critical industries, similar to past Section 232 investigations that targeted sectors like pharmaceuticals, copper, and lumber. These probes led to a 10% tariff on most imports, with higher rates for major trade partners starting August 1. Consequently, analysts warn of significant impacts on Taiwan, which produces more than 60% of the world's semiconductors and nearly 90% of its advanced chips. Since these chips are essential for the automotive, computing, and communications industries, tariffs could disrupt supply chains that rely on Taiwanese production and drive up costs worldwide. Meanwhile, U.S. companies like Intel, GlobalFoundries, and Texas Instruments are increasing domestic production. However, industry experts point out that building adequate capacity will require substantial investment and years of focused effort, highlighting the challenge of addressing supply chain vulnerabilities while ensuring continued access to advanced technology. Should the U.S. government implement semiconductor tariffs, the move could significantly impact global manufacturing costs and strategy. Therefore, market observers are awaiting the investigation’s findings to assess the full scope of any potential restrictions.