Trump heavily impacted the American semiconductor industry.

In the tariff storm unleashed by Trump, the semiconductor industry, a key sector in global tech competition, has now become the primary victim. Companies throughout the industry chain are facing pressure, with giants like Nvidia and Intel also unable to escape. The so-called "reshoring of manufacturing" now seems more like a costly policy experiment - a real test of the "American chip-making dream" is unfolding. Applied Materials, Lam Research, and KLA are the three major semiconductor equipment vendors in the US. According to industry sources, as estimated from discussions between semiconductor industry executives, SEMI, and Washington officials last week, under Trump's new tariff measures, these three equipment vendors could lose $350 million per year, totaling over $1 billion. Smaller equipment companies like Onto Innovation may also face tens of millions in additional expenditures. Where do these additional costs come from? Firstly, from lost revenue due to sales setbacks, secondly, from the cost of seeking alternative suppliers for precision equipment components, and thirdly, from tariff compliance costs. In addition to the equipment sector, US chip design companies are also suffering heavy losses, starting with Nvidia. Nvidia announced on March 15 that it had received a notice from the US government, stating that exporting chips such as the H20 chip and chips with H20 memory bandwidth and interconnection bandwidth to countries like China requires a license. Nvidia estimates that in the first quarter, costs related to the H20 product, including inventory, procurement commitments, and related provisions could reach up to $5.5 billion. This is just the cost related to the H20 product; in Nvidia's supply chain, which includes many non-US suppliers such as TSMC, SK Hynix, and ASML, the impact could be significant. TSMC, for example, has previously established a factory in the US and is now reportedly increasing production at this plant in response to Trump's tariffs. However, with limited capacity, TSMC may increase prices by 30%. ASML Chief Financial Officer Roger Dorsche is also concerned about the potential impact of Trump's tariffs. The potential effects include levying tariffs on complete systems shipped to the US, on components and tools used in the US during operation, on materials imported to the US for further manufacturing, and on tariffs imposed by other countries on goods shipped from the US. Nvidia's advanced AI chips require both TSMC's advanced manufacturing processes and ASML's extreme ultraviolet lithography equipment. If the company cannot find alternative US suppliers, Nvidia may have no choice but to pay higher costs for these chips and technologies under Trump's tariff policy. Intel is also facing a similar situation. While previously carrying the "American dream" of making semiconductors in the US, changes in chip legislation under Trump and high-level changes within Intel have cast doubt on the company's semiconductor production prospects. Aside from domestic production capacity in the US, Intel also has production facilities in China, Ireland, Vietnam, Malaysia, and outsources some advanced chip production to companies like TSMC. SK Hynix and ASML, as mentioned earlier, are also suppliers to Intel. With this supply chain in place, Intel is also inevitably affected by Trump's tariffs. Can the US really make chips on its own on this island? The semiconductor industry originated in Silicon Valley, but the US has not produced the most advanced chips since 2017. Today, the most sophisticated and valuable chips mostly come from Asia. Over decades, the industry derived from chips has evolved into a deeply integrated ecosystem. For example, the chips in an iPhone are designed in the US, manufactured in China, South Korea, or Japan, packaged in Vietnam, assembled and tested in China, and then shipped to the US. Until Trump actively used tariffs as a weapon, hoping to promote domestic semiconductor production in the US. Recently, Trump admitted that TSMC is investing in the US because of tariffs, and if the company's chairman, Morris Chang, did not go, products exported by TSMC to the US would face very high tariffs. As the spokesperson for the Ministry of Foreign Affairs, Lin Jian, said, "Under the pretext of reciprocity, the US exercises hegemony, sacrificing the legitimate interests of other countries for its own selfish interests, placing 'America First' above international rules. This is typical unilateralism, protectionism, and economic bullying." However, the semiconductor supply chain cannot be moved at will. "Semiconductor manufacturing plants are not just box factories," said Mark Einstein, research director at Counterpoint. "These plants are highly advanced and clean environments, and it takes years to build such facilities." Furthermore, TSMC's Arizona plant had previously faced delays in production due to a shortage of local engineers and skilled workers; Intel's Ohio fabs were also delayed due to cost overruns. Can Trump's touted tariff policy really liberate the US economy and bring job opportunities to America?