---
title: "According to industry insiders, U.S. tariffs could cost chip equipment manufacturers more than $1 billion"
description: "According to industry insiders, the new tariffs imposed by U.S. President Trump could result in annual losses of over $1 billion for American semiconductor equipment manufacturers. Major chip equipmen"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/236116985.md"
published_at: "2025-04-15T22:30:46.000Z"
---

# According to industry insiders, U.S. tariffs could cost chip equipment manufacturers more than $1 billion

> According to industry insiders, the new tariffs imposed by U.S. President Trump could result in annual losses of over $1 billion for American semiconductor equipment manufacturers. Major chip equipment manufacturers Applied Materials, Lam Research, and KLA could each face losses of about $350 million, while smaller competitor Onto Innovation may also incur tens of millions of dollars in additional expenses. These losses primarily stem from missed opportunities to sell equipment to overseas competitors and compliance costs

Reuters Toronto, April 15 - Two sources familiar with the matter said that based on industry calculations discussed with officials and lawmakers in Washington last week, President Trump's new tariffs could cost U.S. semiconductor equipment manufacturers more than $1 billion annually.

The sources said that the three largest chip equipment manufacturers in the U.S. – Applied Materials (AMAT.O), Lam Research (LRXC.O), and KLA (KLAC.O) – could each incur losses of about $350 million per year due to the tariffs. Smaller competitors like Onto Innovation (ONTO.N) may also face tens of millions of dollars in additional expenses.

This article reports for the first time the potential billions of dollars in costs facing the chip equipment industry, as well as the days of discussions between industry executives and U.S. officials regarding these costs.

These companies manufacture some of the world's most sought-after chip manufacturing equipment, which may require thousands of specialized parts.

Chip equipment manufacturers have already lost billions of dollars in revenue following former President Biden's implementation of a series of export control measures aimed at restricting the provision of advanced semiconductor manufacturing equipment to Chinese entities.

The estimated costs discussed in Washington last week include revenue losses, primarily due to missed opportunities to sell less advanced equipment to overseas competitors, as well as the costs associated with finding and using alternative suppliers for complex components of chip manufacturing tools. The estimates also include tariff compliance costs, such as increased personnel to handle complex compliance work.

Applied Materials did not respond to requests for comment. KLA and Lam Research declined to comment

### Related Stocks

- [AMAT.US - Applied Materials](https://longbridge.com/en/quote/AMAT.US.md)
- [ONTO.US - Onto Innovation](https://longbridge.com/en/quote/ONTO.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.