Per the 1:1 rule, chipmakers or semiconductor companies will have to balance import volumes with domestic production. Failing to do this over time will attract penalties, including tariffs on imported chip components. It is hoped that this will give a leg up to chip production in the US, which has fallen from 37% in 1990 to 10% in 2022. However, analysts say the move would benefit large companies like GlobalFoundries and Intel, which already have US fabs.