White House mulling tariff exemptions for Big Tech — Amazon, Google, Microsoft, other AI hyperscalers to be spared worst of import duties with U.S.-Taiwan deal

Source: Tom’s Hardware

Image credit: The White House

Tariff carve‑outs for AI hyperscalers

The U.S. Department of Commerce is reportedly planning tariff exemptions for AI “hyperscalers” such as Amazon, Google and Microsoft. According to the Financial Times, the move would let these companies obtain the chips they need to stay competitive in the AI race while still encouraging chip makers—most notably Taiwan Semiconductor Manufacturing Company (TSMC)—to continue investing in the United States.

U.S.–Taiwan semiconductor trade deal

Washington and Taipei agreed last month to reduce U.S. tariffs on Taiwanese chips from 20 % to 15 % in exchange for a $250 billion commitment on direct investments and an additional $250 billion in credit guarantees for Taiwanese companies investing in U.S. semiconductor production. The reduced tariff applies to chips made on the island, but Taiwanese firms that build fabs in the United States will receive a full exemption.

TSMC’s exemption framework

• While a fab is under construction, manufacturers can import 2.5 × the planned capacity tariff‑free.
• Once production begins, the exemption drops to 1.5 × the capacity.

TSMC is expected to allocate its exemptions to Big‑Tech clients ordering large volumes of AI chips. The total amount of tariff‑free chips will still depend on the company’s U.S. investment levels.

Current U.S. investments

• TSMC has pledged $165 billion to U.S. operations, with one fab already running in Arizona.
• The company’s board recently approved a $45 billion spending package for new fabs, representing a significant portion of its $52–$56 billion capital‑expenditure budget slated for the first quarter of 2026.

Although Taiwan has rejected moving 40 % of its semiconductor capacity to the United States, officials say that production capacity in both regions will grow together as AI infrastructure expands, driving record demand for advanced chips.

Related images