Taiwan MOU non-semiconductor tariff relief went live retroactively May 1 (semiconductor product list still missing); CHIPS Act quantum $2B LoI batch (IBM $1B, GFS $375M); Korea memory tariff protection weaker than Taiwan's (lacks import-multiplier exemptions); 45X PTC survives OBBB.

US Industrial Policy & Tariffs: Section 232 Semiconductors, CHIPS Act, NDAA 2026

Synthesized from web research on 2026-05-30. Sources: Taipei Times, Federal Register, Digitimes, Manufacturing Dive, KEIA, White House, King & Spalding, Baker McKenzie. Treat figures as reported; verify against primary Federal Register notices and SEC filings.

What's New in the Past 72 Hours

May 28–29: Taiwan MOU Non-Semiconductor Tariff Relief Goes Live

On May 28, 2026, Commerce and USTR published a Federal Register notice (document 2026-10571) implementing tariff-related elements of the January 2026 US-Taiwan trade and security MOU. Effective retroactively from May 1, 2026:

Aircraft components: fully exempt from derivative Section 232 steel/aluminum/copper tariffs, reverting to ~1.12% MFN rate
Automobile parts and wood products: capped at 15% combined MFN + Section 232 rate
Taiwan's Vice Premier confirmed parity with EU, Japan, and South Korea on these non-semiconductor categories

Critical gap: Semiconductor product list still not published. The Taipei Times reported May 29: "regarding the highly watched Section 232 tariffs on semiconductors and related derivative products, the US has not yet released a product list." The January MOU promised preferential treatment (import-multiplier quota exemptions linked to US investment), but HTSUS codes remain unpublished as of this writing.

Sources: Taipei Times May 29, Taipei Times May 28, Federal Register 2026-10571, Digitimes May 28

Section 232 Semiconductor Tariff Framework (Phase 1)

Presidential Proclamation 11002 (effective January 15, 2026) imposed 25% tariff on narrowly defined advanced logic chips meeting technical parameters (TPP 14,000–17,500 or 20,800–21,100 with corresponding DRAM bandwidth):

Includes: H200, MI325X parameter range chips (targets Nvidia/AMD datacenter GPUs)
Use-based exemptions (NOT origin-based): US data centers (100 MW+), R&D, startups, non-data-center consumer/industrial/public sector
Phase 2 (memory chips): Commerce report due July 1, 2026 — potential 100% tariff on DRAM/NAND if recommended

Sources: White House Proclamation 11002, EY Global Tax News

CHIPS Act Funding — May 2026 Batch

May 21 Quantum Batch ($2B in Letters of Intent)

Company	Amount	Location
IBM	$1B	Albany, NY (quantum spinout "Anderon")
GlobalFoundries (GFS)	$375M	Malta, NY
Rigetti	$100M	Berkeley, CA
Quantinuum	$100M	Broomfield, CO
PsiQuantum	$100M	Palo Alto, CA
Infleqtion	$100M	Louisville, CO
D-Wave	$100M	Boca Raton, FL
Atom Computing	$100M	Boulder, CO
Diraq	$38M	Palo Alto, CA

Note: All are Letters of Intent, not binding agreements. Trump administration is "renegotiating the law's federal funding with each of the awardees."

GlobalFoundries (NASDAQ: GFS) — only conventional semiconductor fab in this batch, manufactures specialized chips (aerospace, automotive, defense) in Malta, NY.

Prior Large Awards (for context)

Intel: $7.86B (Nov 2024 final agreement; Arizona + Ohio leading-edge logic)
Micron: $6.165B (Clay, NY + Boise, ID; NY construction delayed, Idaho accelerated; ~$1.2B reallocated NY→ID)
Samsung: up to $4.745B (Taylor, TX; renegotiation in progress)
Texas Instruments: $1.61B (TX + UT analog/embedded)
SK Hynix: $450M (Indiana HBM packaging, operational ~2028)

Source: Manufacturing Dive CHIPS Tracker, updated May 26, 2026

South Korea Semiconductor MOU — Protection Assessment

Short answer: Partial and conditional — NOT equivalent to Taiwan's coverage.

The US-Korea deal (announced July 2025, detailed November 2025) includes:

South Korea committed $350B in US strategic industry investment ($150B shipbuilding, $200B other)
Section 232 rate capped at 15% combined MFN + Section 232 (matching EU cap)
"No less favorable" clause: Korea gets terms no worse than future agreements covering similar semiconductor trade volumes

Critical weakness: Taiwan's MOU includes explicit production-linked exemptions: Taiwanese companies building US capacity can import up to 2.5x that capacity duty-free during construction and 1.5x afterward. Korea's MOU text does NOT contain equivalent import-multiplier language.

Memory tariff risk remains elevated: Commerce Secretary Lutnick stated directly: "Everyone who wants to build memory has two choices: They can pay a 100 percent tariff, or they can build in America." Neither Samsung nor SK Hynix operates US memory fabrication (only SK Hynix packaging in Indiana). Both responded by accelerating US fab expansion timelines by ~6 months in early May 2026.

Sources: KEIA: What Updated US-Korea Trade Terms Signal, KED Global: Samsung/SK Hynix accelerate, Substack: "No Less Favorable" Test

FY 2026 NDAA — Key Semiconductor/Industrial Base Provisions

Section 5949: Expands ban on procurement from foreign adversary chipmakers — SMIC, CXMT (ChangXin Memory), and YMTC explicitly prohibited from executive agency contracts. Direct revenue headwind to these three; tailwind to US/allied competitors.
Outbound investment restrictions: Codified into Defense Production Act — mandatory notification for investments in China involving ICs, AI, semiconductors, and quantum computing.
Critical mineral sourcing: Expanded to include molybdenum, gallium, and germanium — must be sourced from allied nations.
High-performance computing and hypersonics: Added to covered technology sectors.

Sources: King & Spalding: FY 2026 NDAA, Baker McKenzie: Defense Policy Bill

Tax Credit Landscape (One Big Beautiful Bill)

45X Advanced Manufacturing PTC (SURVIVED): Pays $0.04–0.05/wafer-cm² for domestic chip production; up to $150/unit for certain critical components. Intel and Micron are primary direct beneficiaries. AMAT and KLAC benefit indirectly through increased US fab capex.
48D CHIPS Credit: Boosted to 35% but expires end of 2026
Wind/solar IRA credits: Largely phased out; semiconductor manufacturing credits intact

Ticker Implications

Ticker	Thesis	Catalyst
INTC	Only US-domiciled leading-edge logic fab; 45X PTC recipient; $7.86B CHIPS grant; Section 5949 excludes all Chinese competitors	CHIPS funds disbursing; 45X survives OBBB
MU	Only US-domiciled DRAM/NAND producer; $6.165B CHIPS grant; Korean memory tariff risk is MU's competitive moat	Phase 2 memory tariffs would be most asymmetric benefit
AMAT	Largest US semicon equipment maker; benefits from every new US fab build	All CHIPS fab starts generate AMAT capex orders
KLAC	Process control equipment; same fab-build demand driver as AMAT	Benefits from quality/yield emphasis at new US fabs
GFS	US specialty fab; just received $375M CHIPS LoI (May 21); NDAA defense preference	Aerospace/defense where NDAA restricts Chinese sourcing
TXN	$1.61B CHIPS grant; analog/embedded not subject to Phase 1 tariffs; 45X credit	Sherman TX and Lehi UT fabs ramping
TSM	Best-protected foreign fab via Taiwan MOU import-multiplier exemptions; $250B+ US investment commitments	Semiconductor product list gap is minor near-term uncertainty
Samsung (005930), SK Hynix (000660)	Phase 2 risk elevated; Korea MOU provides 15% cap but lacks Taiwan-style quota exemption; Lutnick's 100% language	Accelerating US investment necessary but multi-year

US Industrial Policy & Tariffs: Section 232 Semiconductors, CHIPS Act, NDAA 2026

US Industrial Policy & Tariffs: Section 232 Semiconductors, CHIPS Act, NDAA 2026

What's New in the Past 72 Hours

May 28–29: Taiwan MOU Non-Semiconductor Tariff Relief Goes Live

Section 232 Semiconductor Tariff Framework (Phase 1)

CHIPS Act Funding — May 2026 Batch

May 21 Quantum Batch ($2B in Letters of Intent)

Prior Large Awards (for context)

South Korea Semiconductor MOU — Protection Assessment

FY 2026 NDAA — Key Semiconductor/Industrial Base Provisions

Tax Credit Landscape (One Big Beautiful Bill)

Ticker Implications

Provenance