THE FUTURE OF AI
“ We’ re going to be putting a very large tariff on chips and semiconductors,” Trump declared during that meeting.
“ But the good news for companies like Apple is if you’ re building in the US or have committed to build, without question, committed to build in the US, there will be no charge.”
The binary nature of this policy forces everyone to one side or the other. Companies that can credibly commit to American manufacturing escape the tariffs entirely. Those that cannot face what amounts to economic exile from the US market.
Taiwan Semiconductor Manufacturing Company( TSMC), the world’ s largest contract chipmaker, saw its stock surge 5 % as investors recognised the company’ s existing Arizona commitments would shield it from the tariffs.
TSMC’ s US $ 165bn US investment programme, which includes three advanced fabrication facilities, suddenly looks prescient rather than politically motivated.
The Taiwanese giant manufactures chips for virtually every major AI player – from Nvidia’ s graphics processing units to Apple’ s custom silicon.
Its ability to maintain tariff-free access to the US market provides crucial stability in an increasingly fractured global supply chain.
How Nvidia’ s deal with the US changes everything But it is Jensen Huang’ s negotiations with Trump that have most deeply redefined the rules of engagement.
The Nvidia CEO found himself in the unusual position of haggling with the president over what amounts to a technology tax.
Jensen wanted to resume sales of Nvidia’ s H20 chips to China after the administration lifted its export ban – but Trump saw an opportunity.
“ I said, if I’ m going to do that, I want you to pay us as a country something, because I’ m giving you a release,” the President said. Trump initially demanded 20 % of revenues from Chinese chip sales, yet the CEO
86 October 2025