Can Lutnick’s Chip-for-Chip Idea Work?

The United States faces a significant national security risk due to its heavy reliance on semiconductors imported from Taiwan and South Korea. This dependency is particularly concerning given China's military threats towards Taiwan, which could disrupt the global supply of advanced chips produced by companies like TSMC. To address this vulnerability, the Commerce Department is considering a "chip-for-chip" policy that would tie tariff waivers to verifiable domestic production milestones. This strategy aims to incentivize reshoring and rebuild American semiconductor sovereignty after decades of manufacturing shifting to East Asia.