Preparing for a disruption to the global semiconductor market as Trump’s 25 per cent looms, chipmakers GlobalFoundries and Analog Devices ramp up supply chain diversification.
Chipmakers GlobalFoundries and Analog Devices are putting more efforts to diversify supply chains in anticipation of the Trump administration’s proposed 25 per cent tariff on semiconductor imports, set to take effect by April 12, 2025.
This tariff plan is expected to strain an already volatile global semiconductor supply chain, according to a report by the Manufacturing Dive.
Speaking on GlobalFoundries’ Q4 earnings call, CEO Thomas Caulfield highlighted the critical need for supply chain diversification to reduce the potential impact of the tariffs. He noted that customers are increasingly requesting multi-sourced products from various regions, making diversification a priority for the company.
GlobalFoundries is looking to utilise its extensive manufacturing network across the US, Europe, and Asia, with particular emphasis on its US facilities in Malta, New York, and Burlington, Vermont, to serve American automakers.
On the other hand, Analog Devices is also focusing on diversification through its hybrid manufacturing model. CEO Vincent Roche stated that by early 2027, the company aims to have dual sourcing for all its products, ensuring greater resilience and flexibility. This strategy includes investments in domestic fabs and partnerships across different geographical regions.
While other companies, such as Onsemi, are still monitoring the effects of tariffs, many chipmakers are already planning for the potential consequences of the tariffs, which could disrupt their manufacturing strategies and market forecasts.
Onsemi’s CEO, Hassane El-Khoury, acknowledged the ongoing geopolitical uncertainty that is clouding forecasts for Q2 2025.
Although the US has made progress in strengthening its domestic semiconductor sector, the industry remains highly globalised and vulnerable to international tariff policies. In 2023, the US imported $25.4 billion worth of semiconductor devices, compared to just $3.47 billion in exports, further highlighting the challenges ahead.
