ASM International, a Dutch semiconductor equipment supplier, will pass on any tariff-related cost increases along its value chain, including to customers.

The company shared this during a Bank of America analysts’ meeting.

ASM produces wafer fabrication equipment for advanced transistor designs like Gate-All-Around, used by chipmakers such as Intel and TSMC.

It competes with US-based Applied Materials and LAM Research in certain segments.

Among European peers like ASML and BE Semiconductor, ASM is the most exposed to the US market.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Tariff pass-through is becoming standard practice amid semiconductor supply chain disruptions

ASM International’s decision to pass tariff costs to customers reflects a broader industry trend as semiconductor equipment makers navigate trade tensions.

Since 2019, tariffs have disrupted semiconductor supply chains, forcing companies to duplicate operations, raising costs, and reducing profitability across the industry 1.

The current average effective U.S. tariff rate of 17.8% (highest since 1934) has created significant cost pressures that companies are increasingly unwilling to absorb internally 2.

ASML’s earlier statement that U.S. chipmakers would bear the “lion’s share” of tariff costs demonstrates that ASM’s approach aligns with how European semiconductor equipment makers are handling these trade pressures.

This pass-through strategy highlights how tariffs ultimately impact the entire value chain, with studies showing they increase consumer prices by approximately 1.7% in the short run 2.

2️⃣ Geographic positioning creates uneven competitive impacts from tariffs

ASM’s confidence that it “won’t be at a disadvantage compared to competitors” reveals how tariff impacts vary significantly based on companies’ geographic footprints and supply chain structures.

As the European semiconductor equipment maker most exposed to the U.S. market, ASM faces different tariff pressures than its regional peers ASML and BE Semiconductor.