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The U.S. Commerce Department is conducting a national security investigation into imports of semiconductor technology and related downstream products, according to a Federal Register notice put online Monday. 

The official document — which calls for public comments on the investigation — further confirms that chips and the electronics supply chain will not be excluded from U.S. President Donald Trump’s tariff plans despite his statement on Friday that many of those products were exempt from his “reciprocal tariffs.”

As part of the probe, the Commerce Department will investigate the “feasibility of increasing domestic semiconductors capacity” in order to reduce reliance on imports and whether additional trade measures, including tariffs, are “necessary to protect national security.”

The investigation encompasses a wide range of items, including chip components such as silicon wafers, chipmaking equipment, and “downstream products that contain semiconductors.” 

Semiconductors play a role in essentially every type of modern electronics, giving the investigation massive implications for Trump’s global trade war as he seeks to boost U.S. manufacturing. 

While exemptions have been made on various electronics products, including smartphones, computers and semiconductors, Trump and some officials said over the weekend that the reprieve was temporary and part of plans to apply separate tariffs to the sector.

The semiconductor investigation — first initiated by the secretary of commerce on April 1 — sets the grounds for such tariffs to come into effect. 

The Commerce Department will first allow for public comments on the investigation to be submitted no later than 21 days from Wednesday.

However, on Sunday, Trump reportedly said he will be announcing new tariff rates on imported semiconductors over the next week, and that flexibility will be shown to certain companies. 

On the same day, Commerce Secretary Howard Lutnick told ABC News’ “This Week” that separate tariffs for semiconductors and electronic products were coming in “probably a month or two.” 

Trump’s Commerce Department cited the probe under Section 232 of the Trade Expansion Act of 1962, which can permit the U.S. president to impose tariffs on the grounds of national security.

The justification is being used for a similar investigation on pharmaceuticals and pharmaceutical ingredients, which was also disclosed on Monday.

The U.S. is heavily dependent on semiconductor technology imported from markets like Taiwan, South Korea, and the Netherlands. 

However, for years, Washington has been implementing policies aimed at onshoring more of the semiconductor supply chain, including through industrial policies such as the $280 billion CHIPS and Science Act. 

Nvidia, the chipmaker powering much of the artificial intelligence boom, announced on Monday a plan to design and build factories that, for the first time, will produce NVIDIA AI supercomputers entirely in the U.S.

Last month, Taiwan Semiconductor Manufacturing, the world’s largest chip foundry, announced its intention to increase its existing investments in advanced semiconductor manufacturing in the U.S. by an additional $100 billion.

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Senator Richard Blumenthal, D-CT, speaks during a Senate Judiciary Committee hearing on the January 6th insurrection, in the Hart Senate Office Building on Capitol Hill in Washington, DC, March 2, 2021.

Graeme Jennings | Pool via Reuters

Sen. Richard Blumenthal this week pressed Visa for detailed plans and documents related to its deal to provide payments services to Elon Musk’s social media site, X, as it prepares to launch a digital wallet.

Blumenthal, a Democrat from Connecticut and the ranking member of the Senate’s Permanent Subcommittee on Investigations, pointed to Musk’s role in hobbling the Consumer Financial Protection Bureau — the consumer watchdog that would be a key regulator of the X Money service — as among the reasons for the information request, according to a March 6 letter obtained by CNBC.

“Given the unique position of X Chairman and Chief Technology Officer Elon Musk as leader of the Department of Government Efficiency and his recent role in gutting the Consumer Financial Protection Bureau … Visa stands to take advantage of the deep conflicts of interest and unscrupulous conduct of its new business partner,” Blumenthal wrote.

The Senate request is one of the first signs of scrutiny on Visa, which runs the world’s largest credit card network, after a late January announcement that it had agreed to power peer-to-peer payments on X. Days after the deal was disclosed, operatives from Musk’s Department of Government Efficiency gained access to CFPB data systems, leading to accusations that Musk wanted to kneecap a future regulator and that he could steal trade secrets of competitors to his nascent X Money service.

The letter, addressed to Visa CEO Ryan McInerney, also cast doubts about whether a social media network known for “bots, scams and hate speech” would be able to prevent scams and fraud from proliferating on the site. Musk purchased the site in 2022, when it was known as Twitter.

“These concerns raise questions about X’s ability to protect consumers from fraud and scams as it ventures into the financial sector,” Blumenthal wrote.

“As the largest payment processor in the world, Visa has a legal responsibility to ensure its network is free of financial crime such as scams and fraud, money-laundering, terrorist financing, and more,” he said.

Blumenthal asked for a detailed description of Visa’s plans to enable payments on X, including the business model of the service and Visa’s role in compliance with regulatory requirements around money laundering and illicit remittances.

He also pressed Visa for “all records” related to the deal and communications between X, Visa, DOGE and CFPB personnel.

“We are currently reviewing the letter and will respond appropriately,” a Visa spokesman said in a statement.

A representative for X didn’t immediately have comment.

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Stellantis Chairman John Elkann speaks during the presentation of the new Fiat Panda as Fiat celebrates the 125th anniversary of its brand in Turin, Italy, July 11, 2024.

Massimo Pinca | Reuters

DETROIT — Stellantis Chairman John Elkann detailed several upcoming plans the trans-Atlantic automaker has for U.S. investments when meeting with President Donald Trump during a dayslong trip to Washington, D.C., before Trump’s Monday inauguration.

The plans, as outlined in an internal message Wednesday to U.S. employees, included creating 1,500 jobs and reopening a plant in Illinois to build a new midsize pickup truck in 2027; building a new version of the Dodge Durango SUV that was being considered for Mexico at a Detroit plant instead; and adding more support for plants in Toledo, Ohio, and Kokomo, Indiana.

“John told the President that building on our proud, more than 100-year history in the U.S., we plan to continue that legacy by further strengthening our U.S. manufacturing footprint and providing stability for our great American workforce,” Antonio Filosa, head of Stellantis’ North American operations, said in the message.

Leaders from each of the “Big Three” automakers in Detroit have now separately spoken or met with Trump. They also were among the companies to each donate $1 million to Trump’s inauguration.

General Motors on Wednesday confirmed CEO Mary Barra also spoke with Trump prior to the inauguration about the U.S. automotive industry and economy. The company characterized it as a great, “friendly and productive” conversation.

Flanked by Blackstone CEO Stephen Schwarzman (L) and General Motors CEO Mary Barra (R), U.S. President Donald Trump holds a strategy and policy forum with chief executives of major U.S. companies at the White House in Washington February 3, 2017.

Kevin Lamarque | Reuters

Ford Motor Chair Bill Ford earlier this month said he had a lengthy phone call with the then-president-elect.

“We had a long, long, conversation,” Ford said Jan. 9 during an event for the Detroit Auto Show. “He called me out of the blue and we had a terrific conversation. And he understands the importance of our industry and Ford in the industry. He wants to be helpful. I think once he gets his staff together, we’ll probably be able to go a little bit deeper.”

Some of the Stellantis’ announcements, such as building the midsize pickup truck in Illinois, were previously expected under a contract with the United Auto Workers union. However, they had come into question under strategic decisions made by former Stellantis CEO Carlos Tavares.

UAW President Shawn Fain, who had been campaigning for Tavares’ firing, hailed the announced plans. The union had previously filed grievances and held anti-Stellantis rallies over job cuts and potential changes to the company’s production plans.

“This victory is a testament to the power of workers standing together and holding a billion-dollar corporation accountable. We’ve shown that we will do what it takes to protect the good union jobs that are the lifeblood of places like Belvidere, Detroit, Kokomo, and beyond,” Fain said in a statement Wednesday.

The New York Stock Exchange welcomes The Jeep Brand (NYSE: STLA) to the podium, on May 31, 2024. To honor the occasion, Antonio Filosa, Chief Executive Officer, joined by Lynn Martin, President, NYSE Group rings The Opening Bell®.

NYSE

Elkann, scion of Italy’s Agnelli family who founded Fiat, is overseeing the automaker amid a search for a new CEO following Tavares’ abrupt December departure amid declining profits, slumping market share and disagreements with the company’s board.

Plans for Stellantis’ Jeep complex in Ohio include “additional technologies and strong product actions for Jeep Wrangler and Jeep Gladiator” and “more components critical” to supporting facilities.

Stellantis’ investments for Indiana include production of a new four-cylinder engine, according to the memo.

“Our plans, focused on increasing market share and growing sales volume, entail a multibillion-dollar investment in our people, great products, and innovative technology, all here in the U.S.,” Filosa said.

Reuters on Tuesday reported Elkann met with Trump and several top administration officials before Trump’s inauguration, which Elkann was invited to but did not attend.

Elkann, who also serves as chairman of Ferrari, flew back to Italy prior to the inauguration to meet seven-time world champion Lewis Hamilton as the new Ferrari Formula One driver, Reuters reported.

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Huawei launched the Mate 70 series in an event in Shenzhen on November 26, 2024. The phones are the first capable of running Huawei’s new operating system called HarmonyOS NEXT.

Huawei

Huawei on Tuesday launched the Mate 70 series of smartphones that can run on the company’s latest self-developed operating system, as the Chinese giant continues its push toward technological independence in the wake of U.S. sanctions.

The Mate 70 is the successor of the Mate 60, which was released last year and sent shockwaves through the tech and political worlds. It contained a semiconductor that many had thought Huawei and China would find difficult to produce, given the widespread the U.S. restrictions that have looked to cut off the world’s second-largest economy from leading-edge chips. Huawei was separated from Google’s Android operating system in 2019, forcing the Chinese tech giant to develop its own software.

Huawei did not mention what chip the phone was running, but Richard Yu, the head of Huawei’s consumer and auto businesses, said that the Mate 70 can operate on HarmonyOS NEXT — the company’s first fully self-developed mobile operating system.

Huawei is hoping that the OS can become a viable alternative to Android and Apple’s iOS in China. The company’s early versions of HarmonyOS were built using open-source Android code.

However, HarmonyOS NEXT reportedly no longer uses that code, marking a significant update in Huawei’s software development.

“HarmonyOS Next has good potential as an alternative in China,” Will Wong, senior research manager at IDC, told CNBC. “This is not only because of Huawei’s brand name but also because it has been putting effort into attracting developers to join its ecosystem.”

The company’s consumer business was crippled after various White House restrictions removed its access to key tech from chips to software. But with the Mate 60 launch last year, Huawei’s business in China has been revived, putting pressure on Apple.

Huawei started taking reservations for the device earlier this month and has racked up more than 3 million reservations for the device on one Chinese e-commerce website. This may not necessarily translate into sales.

The company talked up the artificial intelligence features of its device, including photo editing tools. It comes at a time when smartphone makers are looking to lure customers in with new AI tools. In China, the race is on among domestic players to make an impression with their AI tools before the launch of Apple Intelligence in the country.

The Mate 70 series comes in three varieties — the Mate 70, Mate 70 Pro and Mate 70 Pro+. The Mate 70 starts at 5,499 ($759) Chinese yuan, while the Mate 70 Pro+ starts at 8,499 yuan.

On Tuesday, Huawei also took the wraps off its latest foldable smartphone called the Mate X6 which starts at 12,999 yuan.

New OS in focus

Over the past year, Huawei appears to be bolstered by the success of its devices in China and, posting growth that has propelled it back into the list of top five smartphone players in the country.

The company has looked to display its technological capabilities publicly from the trifold smartphone launched in September to HarmonyOS NEXT in a bid to show it is not being held back by U.S. sanctions.

In addition to the Mate 70 series and Mate X6 foldable being capable of running the new OS, Huawei said some of its older devices will receive the software upgrade over the coming months.

The success of operating systems is often predicated on the suite of its available apps. During the launch event, Yu showed how, as part of HarmonyOS NEXT, the AI can interact with popular apps such as Alipay, one of China’s biggest mobile payment services.

For now, Huawei’s latest phones alongside HarmonyOS NEXT are very much focused on the Chinese market, as the company still faces mounting challenges abroad.

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