US plans Big Tech carve-out from next chip tariffs, FT reports

• The Commerce Department would provide tariff exemptions specifically linked to TSMC's investment commitments in the U.S.
• TSMC, the world's largest contract chipmaker, is investing $165 billion to build manufacturing facilities in Arizona
• The carve-out policy has not been finalized or signed by Trump, according to administration officials

Summary

The Trump administration plans to exempt major tech companies including Amazon, Google, and Microsoft from upcoming chip tariffs, according to a Financial Times report citing sources familiar with the matter. The carve-outs would be administered by the Commerce Department and linked to investment commitments from Taiwan Semiconductor Manufacturing Company (TSMC).

Key Details:

• The exemptions specifically target firms building AI data centers
• TSMC is investing $165 billion to construct manufacturing facilities in Arizona
• Plans remain in flux and have not yet been signed by President Trump, according to an administration official

Market Implications:

This proposed policy represents a strategic approach to balancing trade protectionism with the administration's focus on advancing domestic AI infrastructure. By tying exemptions to TSMC's substantial U.S. investment, the administration aims to encourage both semiconductor manufacturing onshore and continued AI development by American tech giants.

The carve-out would provide significant relief to hyperscalers like Amazon (AWS), Google, and Microsoft (Azure), which are engaged in an expensive arms race to build AI data center capacity. Chip costs represent a substantial portion of data center infrastructure spending, and tariff relief could preserve their competitive positioning in the rapidly expanding AI market.

The policy also reinforces the strategic importance of TSMC's Arizona facilities, which represent the world's largest contract chipmaker's commitment to U.S.-based advanced semiconductor production. However, the uncertainty around final implementation—with plans still unsigned—suggests investors should monitor for official announcements before factoring this development into valuations.