US plans to exempt major IT companies from chip tariffs

The administration of US President Donald Trump is preparing to exempt major information technology companies, including Amazon, Google, and Microsoft, from duties planned to be imposed on microchips.

The Daily Baku reports that the Financial Times wrote about this, citing sources.

The decision is driven by the fact that these companies are engaged in building data centers for artificial intelligence. The article notes that if Taiwan’s chip manufacturing group, Taiwan Semiconductor Manufacturing Company (TSMC), undertakes investment commitments, the companies could avoid high tariffs.

According to the Financial Times, this scheme is intended to encourage the world’s leading chip manufacturer to relocate a large portion of its production to the United States.

Currently, TSMC keeps most of its production capacity in Taiwan. The company has pledged to invest 165 billion dollars in developing its capacity in the United States.