The US semiconductor industry is breathing a temporary sigh of relief as President Trump's recent executive order exempted semiconductors and copper imports from reciprocal tariffs. However, this exemption might be short-lived, and the industry remains wary of potential repercussions.
Semiconductor imports are currently exempt, but semiconductor equipment and tools were not mentioned in the executive order, leaving the industry seeking clarification. In contrast, higher tariffs on automotive and consumer electronics are expected to impact the chip industry due to supply chain disruptions and potential retaliatory tariffs from Europe and Asia.
The global semiconductor market saw significant growth, with sales reaching $54.9 billion in February 2025, up 17.1% from the same period in 2024. Despite this growth, uncertainties surrounding tariffs and trade policies continue to pose challenges for the industry.
Intel is pushing forward with its Intel 18A process technology, entering risk production and aiming for high-volume production later this year. The US Department of Commerce has established the United States Investment Accelerator to facilitate investments over $1 billion, streamlining the process for significant projects.
The Semiconductor Industry Association reports year-to-year sales growth, with notable increases in the Americas, Asia Pacific, and China, but a decline in Europe. The ongoing developments in the semiconductor industry highlight the complex interplay between trade policies, technological advancements, and market dynamics. As the industry navigates these challenges, innovation and strategic investments will be crucial for growth and success.
