The tariffs would ensnare cutting-edge smartphone and PC-related chips for Apple, AMD and Nvidia if enacted. But Trump is betting his plan will bring more chip production to the US.

Taiwan computer chip maker TSMC has reported its profit in the last quarter rose 57%, buoyed by the artificial intelligence boom.

If he follows through, it could raise prices on many day-to-day items as economists are almost unanimous that tariffs are passed on as consumer price increases.

U.S. President Donald Trump announced plans to impose massive tariffs on Taiwan-made chips in an attempt to incentivize companies to relocate production to the United States. On the one hand, this could reduce American companies' reliance on Taiwan in general and TSMC in particular.

Donald Trump called for tariffs on foreign computer chips, semiconductors, and pharmaceuticals from places like Taiwan in the near future.