U.S. semiconductor equipment manufacturers are facing potential annual losses exceeding $1 billion due to new tariffs proposed by President Donald Trump’s administration. Major companies like Applied Materials, Lam Research, and KLA could each incur losses of approximately $350 million, while smaller firms such as Onto Innovation may also experience significant financial impacts.
These projected losses stem from anticipated declines in overseas sales of less advanced equipment, increased costs from sourcing alternative components, and expenses related to tariff compliance. The Trump administration has temporarily paused previously announced reciprocal tariffs but is considering further actions to promote domestic manufacturing, including initiating an import investigation.
This development adds to the challenges already faced by the industry following former President Biden’s export controls aimed at limiting advanced chip manufacturing in China, which have prompted China to bolster its domestic semiconductor capabilities. Industry representatives have been in discussions with U.S. officials, emphasizing the need to consider the broader implications of these tariffs on the global semiconductor supply chain.
