Will US Tariff Threat Put Data Centre Chip Supply at Risk?

Semiconductors, the microchips that drive everything from smartphones to large-scale cloud infrastructure, sit at the heart of global data centre operations. 

With demand for high-performance computing continuing to grow, the stability of the chip supply is critical – and it is now under fresh threat from the White House.

US President Donald Trump has announced plans to impose 100% tariffs on semiconductor imports, a measure that would directly affect the flow of critical hardware into hyperscale and enterprise data centres. The tariffs target the processors, memory modules and specialised chips that enable AI, cloud and storage systems to run efficiently.

Craig Barrett, former CEO of Intel, has called semiconductors “the steel of the modern age”, underlining their foundational role in digital infrastructure. For data centre operators, the proposed tariffs could mean delays, increased costs and urgent supply chain adjustments.

Asia’s role in the global data centre supply chain

The tariff threat is aimed squarely at Asian semiconductor giants that dominate the market. Taiwan Semiconductor Manufacturing Company (TSMC) produces more than half of the world’s chips, supplying major technology players including Nvidia, Apple and Microsoft – all of which underpin data centre services.

South Korean companies Samsung Electronics and SK Hynix are key suppliers of DRAM and NAND memory, essential for data storage and high-speed processing in cloud environments. 

Any restriction on imports from these companies would have ripple effects across colocation, hyperscale and edge computing facilities worldwide.

Much of the global economy, including the UK, Europe, US and China, relies heavily on Taiwan for advanced chips, making the island nation a focal point – and a potential choke point – in technology supply chains.

Tariff exemptions and industry manoeuvring

Trump has indicated that some companies could avoid the tariffs by making substantial US manufacturing commitments. 

Apple, for example, will be exempt after pledging an additional US$600bn to American manufacturing. This move lifted TSMC’s share price by 5%, with investors anticipating its existing Arizona facility could protect it from the worst of the measures.

Samsung and SK Hynix may also sidestep the tariffs through their investments in new US fabrication plants. However, for many data centre operators, any gap in supply before these facilities ramp up could pose operational challenges.

On the export side, Nvidia and AMD have struck deals with the US government to pay 15% of their Chinese revenues in return for export licences. This arrangement preserves access to a key market but signals a more transactional trade environment.

Security, sovereignty and the ‘chip wars’

The Trump administration has linked the tariff policy to national security, warning against dependency on Asia for critical technologies, with President Trump previously stating he  “will not allow the US to be held hostage by countries such as China”.

This position aligns with a broader trend in the so-called “chip wars” between the US and China, where both sides are investing heavily to secure domestic production and technological dominance. 

For data centre operators, this geopolitical contest increases the pressure to diversify suppliers and invest in more resilient procurement strategies.

Challenges to US chip manufacturing

Efforts to build chip sovereignty in the US face substantial hurdles. Under the Chips Act, the government has offered significant funding to encourage domestic manufacturing, including US$6.6bn to TSMC for its Arizona plant.

Yet the project suffered delays due to skilled labour shortages, eventually resolved by bringing in thousands of workers from Taiwan.

Such challenges illustrate the complexity of reshoring semiconductor production and highlight why supply chain vulnerabilities may persist even with large-scale investment.

Impact on the data centre industry

For the data centre sector, which depends on a constant flow of CPUs, GPUs and memory modules, the tariff threat introduces uncertainty. 

Operators could see lead times lengthen and costs rise as manufacturers adjust production and logistics to meet US requirements.

Given the global nature of semiconductor fabrication, even facilities with a US footprint often depend on foreign-sourced components. A tariff-heavy environment may prompt shifts toward alternative suppliers or increased stockpiling, but both strategies carry cost and efficiency trade-offs.