Commerce Department may shield major technology companies such as Amazon, Google and Microsoft from proposed chip levies linked to TSMC’s $165 billion Arizona investment
US President Donald Trump’s administration is considering exempting major technology companies such as Amazon, Google and Microsoft from upcoming tariffs on semiconductor imports, the Financial Times reported on Monday, citing people familiar with the matter.
AI data centre chips may get relief
The proposed carve-outs would apply to chips used in building artificial intelligence (AI) data centres, potentially softening the impact of fresh trade measures on some of the largest investors in US digital infrastructure, the report said.
According to the FT, the exemptions would be granted by the US Commerce Department and tied to investment commitments made by Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker.
TSMC’s $165 billion Arizona investment
TSMC is investing $165 billion to set up advanced semiconductor manufacturing facilities in Arizona, one of the biggest foreign direct investments in US history.
Hyperscalers such as Amazon, Google and Microsoft are investing billions of dollars in AI-focused data centres, which require cutting-edge chips to train and deploy large language models and other advanced applications.
Plan still under discussion
An administration official told the Financial Times that the plans remain under discussion and have not yet been signed off by President Trump.
The report comes amid heightened scrutiny of semiconductor supply chains, as Washington pushes to reduce reliance on Asian manufacturing hubs and bring more chip production onshore. TSMC’s Arizona project is central to that strategy, with the US government offering incentives under earlier industrial policy measures to boost domestic fabrication capacity.
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