Apple and other big technology companies have found a way to avoid paying a 100% tax on imported chips — they are promising to invest huge amounts of money in the United States.
What Are Tariffs?
A tariff is a kind of tax that a government puts on goods brought in from other countries. The U.S. government sometimes uses tariffs to protect local jobs or push companies to make things in America.
In this case, the U.S. planned to put a 100% tariff on certain computer chips coming from overseas. That would make them twice as expensive.
You can learn more about tariffs on the U.S. International Trade Commission website.
How Apple Got an Exemption
Apple promised to spend about $600 billion in the U.S. over the coming years. This money will go to:
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Building chip facilities
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Creating jobs in manufacturing
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Expanding research and development centers
Because of these promises, the government agreed not to charge Apple the 100% tariff on the chips it imports.
Other Tech Companies Doing the Same
It’s not just Apple. Major chipmakers like Intel, TSMC, and Samsung have also promised large investments. Some examples:
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Intel is building new chip factories in Ohio.
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TSMC is expanding in Arizona.
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Samsung is working on a big plant in Texas.
For more details on these projects, you can read the Semiconductor Industry Association updates.
Why the U.S. Wants Local Chip Production
Chips are very important for phones, computers, cars, and even medical devices. But most high-end chips are made in other countries, especially Taiwan and South Korea.
The U.S. government wants more chips made in America so:
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The supply is safer during global problems (like wars or pandemics)
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Jobs stay in the U.S.
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America stays a leader in technology
How This Affects Consumers
If the tariffs had been put in place without exemptions, chip prices would have gone up, and so would the price of products like iPhones, laptops, and gaming consoles.
By giving exemptions in exchange for investments, the U.S. hopes to keep prices stable while also boosting local jobs.
Long-Term Benefits
Experts say these deals could:
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Create tens of thousands of U.S. jobs
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Reduce dependency on foreign chip suppliers
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Speed up innovation in American tech
However, building chip factories takes years, so the benefits will not be immediate.
Possible Risks
Some people are worried that companies might make promises but not fully deliver on their investments. The U.S. government says it will track progress and make sure the projects are completed.
Quick Summary Table
| Company | Investment Pledge | Benefit |
|---|---|---|
| Apple | $600 billion | Avoids 100% chip tariff |
| Intel | Billions (exact amount not disclosed) | Factory expansion in Ohio |
| TSMC | $40 billion+ | New plants in Arizona |
| Samsung | $17 billion+ | Chip plant in Texas |
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