Chip Giants Urge Trump Administration To Reconsider Semiconductor Tariffs

Facing rising trade tensions, Intel, Qualcomm, and Micron rally to shield US chipmaking from tariffs, warning of global disruption, lost tech leadership, and rising costs.

Major US chipmakers Intel, Qualcomm and Micron have urged the Trump administration to introduce exemptions to proposed semiconductor tariffs, warning of serious consequences for domestic production and global competitiveness.

The three giants echoed concerns previously raised by Taiwan Semiconductor Manufacturing Company (TSMC), which has invested heavily in US chip manufacturing.

TSMC had earlier cautioned that tariffs without appropriate adjustment periods could undermine its Arizona plant and other investments. The company said that higher costs on older chip technologies, which work alongside cutting-edge semiconductors, could disrupt production and reduce demand.

Intel has recently submitted similar warnings to the US Commerce Department. It called for exemptions on semiconductor wafers, raw materials, and specialised manufacturing equipment, especially items made abroad using US technology.

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The firm emphasised that country-of-origin decisions should focus on where core processes like wafer fabrication occur.

Intel also called for clarity in trade policy, urging the administration to prevent “tariff stacking”—where new duties are added on top of existing ones—and to support national security by prioritising key materials and technologies.

Micron aligned its stance with Intel, highlighting the impact on products like SSDs and memory chips, which form a significant portion of its revenue.

The company noted that despite all its research and development being US-based, its products could be unfairly penalised under broad tariff rules.

Meanwhile, Qualcomm, while supportive of the core message, offered a broader geopolitical perspective. It warned that a rushed tariff regime could fracture the global supply chain and empower foreign rivals.

The firm noted that legacy chips—widely used in AI and made primarily in China—are central to emerging technologies. Disrupting their flow could push other countries to exclude American components entirely.

The company also warned that limitations on global market access could stall US. efforts to lead in 6G wireless development, a sector it sees as critical to future national and economic security.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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