Donald Trump's AI Action Plan, released in July 2025, places domestic semiconductor manufacturing at the heart of US efforts to dominate global AI. The plan supports deregulation, domestic production and export of full-stack technology, positioning chips as critical to national power.

Lawmakers and tech leaders have previously flagged tracking chips post-sale as viable, with companies like Google already using such methods. Trump's plan suggests adopting location tracking and enhanced end-use monitoring to ensure chips avoid blacklisted destinations.

Trump has pressed for more private sector investment in US fabs, reportedly using tariff threats to extract pledges from chipmakers like TSMC. The cost of building and running chip plants in the US remains significantly higher than in Asia, raising questions about sustainability.

America's success in AI and semiconductors will likely depend on how well it balances domestic goals with global collaboration. Overregulation risks slowing innovation, while unilateral restrictions may alienate allies and reduce long-term influence.