US Considers Tariffs on Semiconductors and Introduction of Location-Tracking Chips—Palantir Revenue Up 40% Due to AI Demand
In early August 2025, as part of its trade policy regarding semiconductors, the U.S. government announced plans to consider strengthening tariffs while simultaneously proposing the installation of "location-tracking technology" to monitor the whereabouts of chips at their export destinations. Meanwhile, against the backdrop of rising AI demand, major tech companies such as Palantir and AMD have maintained strong second-quarter performance, attracting investor interest. This article explains the situation from three perspectives: (1) U.S. semiconductor tariff policy and the consideration of chip location-tracking technology, (2) performance trends of major companies due to the AI boom, and (3) the balance between future risks and growth opportunities.
1. Trends in U.S. Semiconductor Tariff Strengthening
1-1. Background and Purpose of Tariff Policy
The U.S.-China conflict, which has continued since the Trump administration, has spread to the semiconductor sector. Senior government officials have indicated a policy to "impose tariffs on semiconductors across the board to increase import costs" (as per the input text), aiming to reduce dependence on China for automobiles, home appliances, and cloud providers. Since April, a transition from individual negotiations with specific countries to a comprehensive tariff system by product category has been under consideration.
1-2. Consideration of "Location-Tracking Technology"
Furthermore, what is drawing attention is the proposal to embed tracking functions, such as GPS, into the chips themselves. A White House official stated, "There is a clear plan to realize chip location tracking through software or physical modifications that require research and development" (as per the input text). This is positioned as a security measure to prevent unauthorized resale or diversion to third countries at export destinations and to maintain U.S. technological superiority.
1-3. Impact by Industry and Company
This move toward tariffs and the introduction of tracking technology is expected to have the following ripple effects:
Automotive Industry: "Automakers face rising semiconductor costs, which may impact the profitability of EV adoption and Advanced Driver Assistance Systems (ADAS)."
Manufacturing Equipment Manufacturers: "While semiconductor manufacturing equipment itself may be exempt from tariffs, additional licensing negotiations will be required for the overseas deployment of such equipment."
Hyperscalers (e.g., OpenAI): "Cloud providers face the risk of increased AI chip procurement costs, necessitating the passing of costs to service prices or the implementation of efficiency measures."
Positioned as a policy package to encourage domestic production in the U.S., companies must be acutely aware of the pressure to review their supply chains.
2. Rising AI Demand and Performance Trends of Major Companies
2-1. Palantir's 40% Revenue Increase—The Reality of AI Contribution
Data analytics platform giant Palantir reported revenue of over $1 billion in the second quarter, a 40% increase compared to the same period last year. Emphasizing that "the phenomenal contribution of AI is the driver of top-line growth" (as per the input text), the commercial sector showed 93% growth. Bloomberg Intelligence also analyzed that "if AI-driven contract renewals and new project acquisitions continue from next quarter onwards, it is possible to maintain an even higher growth rate."
2-2. AMD's Record Profits—Expectations for the AI Race
Semiconductor giant AMD also hit record profits in its second-quarter earnings. Driven by demand for the data center GPU "Instinct" and the AI inference chip "MI series," both the server and PC segments achieved double-digit growth. Investors are hopeful, noting that "while NVIDIA accounts for 95% of the AI accelerator market, AMD is aiming to capture 5% of the share, and the future product roadmap is key" (as per the input text).
2-3. Market Reaction and Future Scenarios
Following these strong results, the stock prices of Palantir and AMD surged immediately after the earnings announcements. Investor sentiment has entered a stage of assessment based on three points: (1) maintenance of high margins for AI-related products, (2) pricing in policy risks (tariffs and export controls), and (3) the competitive environment (the rise of NVIDIA and emerging manufacturers). In particular, as details regarding subsidies under the Chips Act and regulations concerning tracking chip equipment become clearer, they will be viewed as factors affecting price adjustments and earnings forecasts.
3. Balance Between Policy Risks and Growth Opportunities
3-1. The Headwind of Stricter Regulations
While the US government aims for "national security" and "supply chain reshoring" through tariffs and the introduction of tracking technology, companies are forced to deal with increased costs and more complex approval processes. In particular, mid-sized and small semiconductor contract manufacturers (foundries) and advanced equipment makers may face a heavy financial burden.
3-2. The Tailwind Created by the AI Boom
On the other hand, the AI chip market is expanding at an annual rate of 20-30%. In addition to Palantir and AMD, companies such as Intel, Google (TPU), and emerging startups like Habana Labs are competing, accelerating technological innovation. Coupled with government investment support (Chips Act subsidies and defense-related contracts), manufacturing capacity expansion is underway.
3-3. Strategic Countermeasures
Measures that companies should take include:
Diversification of manufacturing bases: Optimizing the balance of factories inside and outside the US to hedge against tariff risks
Technical standards and certification: Participating early in the development of new technologies, including location-tracking chips, to ensure regulatory compliance
Optimization of cost structure: Shifting to high-value-added products for AI applications and improving margins through software-as-a-service models
Through these actions, companies are required to balance risk hedging with growth opportunities.
Conclusion
The US consideration of strengthening semiconductor tariffs and introducing location-tracking technology is a policy aimed at national security and industrial reshoring, but it brings the burden of rising costs and regulatory compliance to companies. Meanwhile, as evidenced by the strong performance of Palantir and AMD, the surge in AI demand remains a powerful tailwind. Moving forward, supply chain diversification and technology development strategies that account for both policy risks and market growth will be the keys to determining a company's success or failure.
