President Trump's proposed tariffs could impose over $1 billion in annual costs on U.S. semiconductor equipment manufacturers, specifically impacting major companies like Applied Materials, Lam Research, and KLA. Smaller firms such as Onto Innovation may incur additional costs. The tariffs aim to boost U.S. manufacturing but raise concerns about escalating expenses related to compliance and missed sales to overseas markets. Discussions between industry leaders and U.S. officials highlight the potential impact, as the industry grapples with previous losses from export controls under the Biden administration, complicating the landscape for U.S. manufacturers.
President Trump's new tariffs pose a potential billion-dollar cost to U.S. semiconductor equipment makers, raising concerns about their financial impact and ongoing production.
The three largest U.S. chip equipment makers, Applied Materials, Lam Research, and KLA, could each lose around $350 million due to the tariffs.
Industry executives and U.S. officials have engaged in ongoing discussions, highlighting the significant negative financial implications of new tariffs on the semiconductor sector.
The potential costs include lost revenue from missed sales, additional expenses for alternative suppliers, and compliance costs involving new personnel.
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