Trump Tariffs May Cost Applied Materials, Lam Research, KLA $350 Million Each, US Chip Equipment Makers Over $1 Billion Annually

U.S. President Donald Trump's proposed tariffs on semiconductor equipment are projected to cost U.S. chip equipment makers more than $1 billion annually, according to industry estimates discussed with government officials and lawmakers in Washington. The three largest U.S. chip equipment manufacturers—Applied Materials, Lam Research, and KLA—each face potential losses of approximately $350 million per year as a result of the tariffs. Smaller companies, such as Onto Innovation, may also incur tens of millions of dollars in additional expenses. The estimated costs reflect lost revenue from missed sales to overseas competitors, increased expenses for sourcing alternative suppliers for complex chipmaking tool components, and compliance costs related to the tariffs. These figures were presented during recent discussions between industry executives, lawmakers, and administration officials, including representatives from SEMI, an international trade group. The Trump administration has largely paused reciprocal tariffs announced in April but is considering further duties to promote U.S. manufacturing and has initiated an investigation into semiconductor imports. The tariff regime remains unclear and the estimate could change as new duties take effect. The chip equipment sector has already experienced billions in lost revenue due to previous export controls implemented by the Biden administration, which targeted advanced semiconductor equipment shipments to China and spurred China to invest in its domestic chip equipment industry. Applied Materials did not respond to requests for comment. KLA and Lam Research declined to comment. The companies build some of the world's most highly sought-after chipmaking equipment, which can require thousands of specialized parts.