Texas Instruments (TXN) saw its stock price plummet by 5.02% in intraday trading on Thursday, as the semiconductor industry reeled from the announcement of new tariffs by former President Donald Trump. The dramatic drop in TXN's share price reflects growing concerns about the potential impact of these tariffs on the chip manufacturing sector.

Trump's announcement of a new tariff structure, including a 10% blanket tariff on all imports and higher duties for specific countries, has sent shockwaves through the technology sector. China, a key player in the global semiconductor supply chain, faces a proposed 34% tariff, while European nations and Japan would see 20% and 24% tariffs, respectively. These measures, if implemented, could significantly disrupt the chip industry's global operations and increase production costs.

While Texas Instruments was not specifically mentioned in the initial reports, the company, as a major player in the semiconductor industry, is likely to face similar challenges as its peers. Other chip stocks, including Super Micro, Micron, Arm, Broadcom, TSMC, AMD, Nvidia, Intel, and Qualcomm, all experienced significant premarket drops ranging from 2% to 5%. The widespread nature of these declines underscores the severity of the potential impact on the entire semiconductor ecosystem, of which Texas Instruments is an integral part.