US to Exempt Big Tech from Upcoming Chip Tariffs, Says FT

• The exemptions would be provided by the Commerce Department and specifically target firms building AI data centers
• TSMC, the world's largest contract chipmaker, is investing $165 billion to build manufacturing facilities in Arizona
• The tariff carve-outs are contingent on investment commitments but plans are still under development and await presidential approval

Summary: US to Exempt Big Tech from Upcoming Chip Tariffs

The Trump administration plans to exempt major technology companies including Amazon, Google, and Microsoft from upcoming semiconductor tariffs, according to a Financial Times report citing unnamed sources. The carve-outs would specifically apply to chips used for building artificial intelligence data centers.

Key Details:

The exemptions will be administered by the Commerce Department and tied to investment commitments from Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker. TSMC is currently investing $165 billion to construct manufacturing facilities in Arizona.

Important Caveats:

An administration official noted that the plans remain in flux and have not yet been signed by President Trump, indicating the policy is still under development.

Market Implications:

This potential exemption would provide significant relief to Big Tech companies heavily investing in AI infrastructure, allowing them to continue expanding data center capacity without the burden of additional tariff costs. The move appears designed to incentivize domestic chip production while supporting the AI sector's rapid growth.

The policy links tariff relief to TSMC's substantial U.S. manufacturing investment, suggesting a strategic approach to onshoring semiconductor production while maintaining competitive advantages for American tech giants in the global AI race. This could strengthen the U.S. position in both semiconductor manufacturing and AI development, though the exemptions may raise concerns about preferential treatment for large technology companies over smaller competitors.

The article was published February 9 by Reuters.