The semiconductor industry faces challenging times as it navigates tariff uncertainty, rising costs, chip shortages, and increased demand due to AI growth. The impact of these challenges could be significant given that semiconductors were the fourth-largest industry globally by value creation in 2024. Semiconductors underpin many critical industries, including consumer electronics, automotives, and national security technologies, and the U.S. is one of the largest importers of semiconductor end products.
Tariffs are a particularly fluid area of concern as the semiconductor industry awaits potential action by the Trump administration.
Current Section 232 investigations hint at future tariffs
Beyond country-specific tariffs, tariffs on semiconductor chips have been paused as of mid-April 2025. However, the current administration has initiated Section 232 investigations into semiconductors and some of their inputs. Section 232 investigations are inquiries conducted by the U.S. Department of Commerce to assess whether the volume or circumstances of imports of a specific product threaten U.S. national security. If the investigation determines a threat exists, the President can impose tariffs or other restrictions on those imports.
Here’s a current snapshot of tariff-related actions across semiconductors and their inputs:
- Copper: Section 232 investigation initiated in March 2025. Copper is the industry standard for semiconductor interconnects, the microscopic wires that connect billions of transistors, and the U.S. imports nearly half of the copper it uses. In advance of the 232 investigation’s completion, the administration announced that a 50 percent tariff will be imposed on imports of copper as of August 1, 2025.
- Polysilicon: Section 232 investigation initiated in July 2025. Polysilicon is the raw material for producing silicon wafers, which are the building blocks of integrated circuits.
- Semiconductors: Section 232 investigation initiated in April 2025. This investigation probes semiconductors, semiconductor manufacturing equipment (SME), and their derivative products (for example,downstream products that contain semiconductors, such as those that make up the electronics supply chain). In addition, there is an ongoing Section 301 investigation by the Office of the U.S. Trade Representative (USTR) specifically targeting China’s trade practices and assessing dependencies and vulnerabilities that could harmfully impact U.S. semiconductor producers and foundries.
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How Sayari helps organizations proactively prepare for tariffs
Given the current investigations into semiconductors and their inputs, it’s likely that more tariffs affecting this industry will be announced in the near term. Organizations can take steps now to assess their supply chains for potential tariff impact and evaluate their tariff mitigation options.
Sayari solutions enable organizations to move beyond reactive tariff management to proactive supply chain optimization by helping teams identify affected suppliers and find alternatives quickly.
Sayari’s Tariff Feature directly supports risk-informed decision-making by converting fragmented global trade data into actionable intelligence to quantify risk and plan mitigation. Robust advanced search tools facilitate the identification of affected suppliers so teams are not bogged down in complex financial modeling that may need constant revision as policies change. These capabilities transform tariff management from reactive cost absorption into proactive competitive advantage while maintaining alignment with organizational goals.
Watch our webinar replay for an overview of the tariff landscape and levers you can employ to change your tariff responsibility.
