Intel, Qualcomm & Micron Urge Trump Administration To Exempt Chip Materials From Tariffs & Ensure Access To Foreign Markets

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Chip giants Intel, Micron, and Qualcomm have urged the Trump administration to reconsider tariffs on semiconductors. They believe the measures could raise their production costs and create difficulties for them abroad. In comments submitted to the Commerce Department, Intel has asked the US government to ensure that wafers produced inside America or with American technologies are granted tariff exemptions or other special considerations. The firm also believes that raw materials imported for chip manufacturing should be spared from tariffs due to potential impacts on chip prices.

Like Intel, Qualcomm warns the government that any retaliatory actions against American companies could threaten US global semiconductor leadership. It pointed to its stakes in the 5G/6G markets and AI as being particularly vulnerable to retaliatory actions from foreign countries. Micron, being a manufacturer like Intel, is concerned about the impact on production raw materials, manufacturing equipment and finished products.

Intel, Qualcomm & Micron Take United Front In Advising Trump Administration To Create Semiconductor Tariff Exemptions

The three firms' comments mirror those made by TSMC, in which the Taiwanese fab had urged the Trump administration to consider the interests of businesses and investors who had already committed to increasing America's semiconductor manufacturing capacity. TSMC had outlined that "any tariffs or other import restrictions should be imposed with realistic adjustment times for TSMC Arizona and other U.S. businesses and investors who have already committed to substantial U.S. semiconductor production."

TSMC had also argued that as its leading-edge chips work with those manufactured with older process technologies, any tariff impacts on the older technology products could impact its US customers "by limiting sourcing options, driving up production costs, and reducing product demand." As a result, the firm had warned the Trump administration that lower demand for these products could eventually hamper its plans to build its Arizona fabrication facilities. TSMC's factory construction decisions are based on product demand, as the firm can quickly recover the costs if demand is high.

Intel's comments to the Commerce Department mirror TSMC's sentiment. The firm wants the US government to protect US-manufactured semiconductor wafers, chip-manufacturing raw materials and equipment and products manufactured abroad through US Intellectual Property and US-origin products from tariffs. Intel also believes that the Commerce Department should keep locations "where the most valuable parts of the manufacturing process are located, primarily wafer manufacturing" when determining the country of origin for any tariff actions.

Intel suggests that tariff exemptions should be granted for manufacturing equipment, raw materials, items with limited domestic production, and those essential to national security. The firm also believes that the government should avoid tariff 'stacking' and ensure that any new tariffs replace older ones and do not add to them.

Micron's suggestions mirror Intel's and emphasize the need to consider the impact of tariffs on finished products. Micron notes that a large portion of its revenue relies on SSDs and memory chips, and global application of tariffs could mean that its products are "treated similarly to those of foreign-based semiconductor manufacturers" despite all R&D conducted in America.

Qualcomm takes a slightly different tone. It points out that most the world chips manufactured on older and legacy manufacturing processes originate from China. It adds that the chip industry and the "artificial intelligence ("AI") revolution it is fueling, is currently supported by an intricately interdependent and globalized supply chain ecosystem, where even minor disruptions can give an immeasurable technological edge to our foreign competitors."

Qualcomm warns that any hasty actions could jeopardize US leadership, especially if "foreign countries were to respond to increased tariffs by working together to eliminate U.S. content from their products." The firm also believes that it will be unable to develop and maintain a leadership position in next-generation 6G telecommunications technology if it cannot access foreign markets.

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