Due to the complexity and international nature of the supply chain, the impact of the new tariff policy will be unevenly distributed and difficult to predict.
The Trump administration's proposed tariff policy will hit the global wafer fab equipment (WFE) market, revealing the inevitable cost increases faced by US buyers who rely on overseas monopoly suppliers. The current outlook remains uncertain.
Costs will rise and be unevenly distributed
Although the new tariff policy has a significant impact on the wafer manufacturing equipment industry, its impact will be uneven due to the geographical dispersion and specialization of the existing supply chain.
- Single overseas monopoly equipment: Some key equipment categories are dominated by non-US single monopoly manufacturers (such as EUV of ASML in the Netherlands). If there are no special exemption clauses, such equipment will face rigid tariff impacts.
- Equipment with coexistence of international and local suppliers: There are leading domestic and foreign suppliers in some fields, and the impact of tariffs can be alleviated by adjusting supply chain strategies or reshoring production.
- North American-dominated equipment: Categories that are already dominated by North American suppliers (such as some deposition equipment) have limited impact in the US market.