Catenaa, Wednesday, April 16, 2025-New tariffs introduced by the Trump administration could cost US semiconductor equipment makers more than $1 billion a year, according to industry estimates discussed with US lawmakers and officials.1
The three largest companies in the sector—Applied Materials, Lam Research, and KLA—may each face losses of about $350 million annually due to the tariffs. Smaller rivals, like Onto Innovation, are also expected to incur tens of millions of dollars in additional costs.
The tariffs are expected to affect companies that manufacture advanced semiconductor equipment, which is integral to global chip production. The tariff burden includes lost sales of less advanced equipment to international competitors, as well as the cost of sourcing components from alternative suppliers and managing compliance with the new rules.
These developments follow a period of significant revenue loss for US firms, which were already impacted by export controls under President Joe Biden aimed at limiting the flow of semiconductor equipment to China.
The Trump administration’s new tariffs are seen as a move to incentivize US manufacturing, although it remains unclear how these duties will ultimately be structured.
The chip equipment industry’s total projected loss could shift as further details of the tariffs emerge. The ongoing discussions reflect concerns about the financial stability of the sector as it grapples with increased operational costs and the evolving global trade landscape.
- www.reuters.com: https://www.reuters.com/technology/us-tariffs-may-cost-chip-equipment-makers-more-than-1-billion-industry-estimates-2025-04-15/[↩]
