Market timing could potentially not be better, but the playbook reminds very much what happened earlier this year: in March: 1. A hefty SELL-OFF 2. Significant Accumulation activity at the market bottom 3. Sparging of sudden and unexpected bullish news 4. Extreme Market Rally 5. Market faces Reality-Check: SELL
Markets are rallying on the latest News on 100% tariffs on chips imported to the US.
US Semiconductor Companies in the S&P 500 – Estimated Share of Production (Domestic vs. International)
Company | Production in USA (%) | Production Outside USA (%)
Intel | 60.0 | 40.0 Texas Instruments | 40.0 | 60.0 Micron Technology | 50.0 | 50.0 ON Semiconductor | 35.0 | 65.0 Skyworks Solutions | 25.0 | 75.0 Microchip Technology | 25.0 | 75.0 Qualcomm | 0.0 | 100.0 Nvidia | 0.0 | 100.0 Broadcom | 0.0 | 100.0 Monolithic Power Systems | 15.0 | 85.0 NXP Semiconductors | 0.0 | 100.0
TOTAL (Weighted Average) | 22.7 | 77.3
Breakdown of global semiconductor production volume and labour-cost per country
Country | Global Production Volume (%) | Avg. Hourly Labor Cost
Taiwan | 60% (foundry market share) | $22/hour South Korea | 17.7% | $16/hour United States | 9.5% | $23.54/hour Germany | 9.5% | $23.30/hour
Semiconductor Production Capabilities per Country
Global Semiconductor Production – Overview by Country
Country | Main Chip | Technological | Production Cost | Types Produced | Capability | Level
Taiwan | High-end logic | Advanced nodes | Moderate | chips (<7 nm), | (<5 nm) | | AI, GPUs | |
South Korea | Memory (DRAM, NAND),| Very strong in | Moderate | some logic (3–5 nm) | memory, logic | | | improving |
United | CPUs, GPUs (design),| Strong in design, | High States | logic (7–14 nm) | limited fabs |
China | Mature nodes | Limited advanced | Low
| (40–90 nm), analog, | node access |
| low-cost | |
German | Automotive, analog, | Specialized in | High | power semiconductors| 65–28 nm & BCD |
Malaysia | Packaging, testing, | Backend processes | Very Low / Vietnam | some mature nodes | only | / Thailand | | |
100% Chip Tariffs: Who Really Pays the Price?
A proposed 100% tariff on imported semiconductors would have far-reaching implications for the U.S. tech and manufacturing sectors. With the majority of chips currently produced in Taiwan, South Korea, and China, such a tariff would effectively double the landed cost of foreign-made chips—putting immediate upward pressure on prices for smartphones, computers, automobiles, and industrial equipment.
Who bears the cost?
Ultimately, U.S. consumers and domestic manufacturers will absorb the impact. Companies lacking U.S.-based fabrication capabilities would face a stark choice: either shift production stateside—at significantly higher cost—or pass the increased input prices down the value chain.
While firms like TSMC and Samsung, which are building fabs in Arizona and Texas, are expected to be exempt, the reality is that U.S.-made chips cost up to 50% more due to higher labor, construction, and compliance costs.
How soon could the U.S. fill the gap?
TSMC’s Arizona facility began limited volume production in late 2024. However, full-scale advanced-node capacity won’t be online until 2027–2030. In the meantime, supply constraints and elevated costs are likely to persist—making the tariff more of a geopolitical lever than a practical solution for near-term supply chain resilience.