In its latest bid to boost semiconductor production in the U.S., the Trump administration is reportedly considering a ratio-based approach that would penalize domestic manufacturers with tariffs if they don’t produce enough chips.

The administration is weighing a policy that would mandate U.S. semiconductor companies to manufacture the same number of chips in the U.S. as their customers import from overseas manufacturers, the Wall Street Journal reported, citing anonymous sources.

Companies that don’t comply with this 1:1 ratio will be subject to tariffs, the report said, though the timeline to achieve this ratio isn’t clear.

President Donald Trump has been talking about imposing tariffs on the semiconductor industry since the beginning of August.

Such a ratio-based approach woul

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