Tariffs announced by United States President Donald Trump have forced some of the leading chipset / semiconductor companies to revise their revenue forecast for the coming quarters.
SMIC
SMIC, China’s leading semiconductor foundry, reported a significant financial performance in the first quarter, with revenue surging 28 percent and profit more than doubling to $188 million, driven in part by U.S. clients rushing orders ahead of tariff hikes.
SMIC anticipates a revenue decline of up to 6 percent in the second quarter due to lower production yields amid testing of new equipment. U.S. clients contributed 12.6 percent of its revenue, up from 8.9 percent in the previous quarter. Co-CEO Zhao Haijun highlighted the impact of U.S.-China trade tensions, though he noted that tariff exemptions and a diversified supply chain have mitigated immediate risks. SMIC remains cautious about the second half, citing uncertainties around potential reductions in customer orders due to rising prices. The company primarily produces chips for consumer electronics and home appliances.
Microchip
Microchip Technology has posted strong fourth-quarter results, with net sales reaching $970.5 million, signaling a recovery in chip demand as pandemic-driven inventory stockpiles are gradually cleared. Microchip expects first-quarter revenue between $1.02 billion and $1.07 billion. Microchip CEO Steve Sanghi emphasized that manufacturing optimization actions are nearing completion, which is expected to further reduce inventory in the June quarter. Strategically, Microchip is expanding its atomic clock technology, enhancing microprocessors, and broadening ethernet solutions, targeting growth in the automotive, industrial, and e-mobility sectors.
Arm Holdings
Arm Holdings reported fourth-quarter sales of $1.24 billion. Arm Holdings is forecasting first-quarter revenue of $1.00 billion to $1.10 billion, primarily due to uncertainties surrounding a large licensing deal that may not close in the quarter. CEO Rene Haas cited economic and trade uncertainties as reasons for withholding full-year guidance. Arm’s royalties segment grew by 30 percent in the fourth quarter, driven by increased adoption of advanced smartphone chips. Rene Haas noted that tariffs have had minimal impact on the company so far, as only 10-15 percent of shipments are U.S.-bound. The UK-based firm continues to focus on expanding its presence in data centers, challenging Intel and AMD in the server CPU market while maintaining dominance in smartphone chip technology.
Skyworks Solutions
Skyworks Solutions, a major supplier to Apple, reported second-quarter revenue of $953 million. The company projects third-quarter revenue between $920 million and $960 million. Despite trade tensions, Skyworks noted steady demand for its analog and mixed-signal chips across wireless communication, automotive, industrial, and consumer electronics markets. The company expects its mobile segment to decline slightly, but broader markets are anticipated to grow sequentially.
AMD
Advanced Micro Devices (AMD) forecasted a $1.5 billion revenue hit in 2025 due to new U.S. export controls requiring licenses for AI chip sales to China, a key market that accounts for approximately 25 percent of its revenue. Despite this setback, AMD issued a second-quarter revenue forecast of $7.4 billion, driven by strong demand for AI processors from major cloud clients like Microsoft and Meta Platforms. CEO Lisa Su noted that AI chip revenue from the data center segment is expected to grow by “strong double digits” despite the trade curbs. Data center sales rose 57 percent to $3.7 billion in the first quarter. AMD reported revenue of $7.44 billion, a 36 percent increase. While AMD remains optimistic about AI chip demand, the impact of U.S. trade policies continues to cast uncertainty over its growth outlook.
MediaTek
MediaTek, Taiwan’s leading chip design firm, has refrained from providing full-year guidance due to uncertainties surrounding potential U.S. tariffs but expressed optimism driven by strong AI demand. CEO Rick Tsai highlighted that the first half of the year was “reasonably positive,” though the company remains cautious about the second half given ongoing trade tensions. MediaTek, whose partners include AI giant Nvidia, expects solid growth prospects in the AI sector despite the uncertain macroeconomic environment.
Qualcomm
Qualcomm has reported second-quarter sales of $10.98 billion. The company forecasted third-quarter revenue at a midpoint of $10.3 billion, amid trade uncertainties and softer demand for smartphone chips. Qualcomm, the leading supplier of modem chips for smartphones, faces increased pressure as Apple advances its in-house modem development, reducing reliance on Qualcomm’s chips. Apple, which contributed 27 percent of Qualcomm’s revenue, is expected to cut orders further, potentially ceasing Qualcomm chip purchases by 2027. Meanwhile, Qualcomm remains exposed to trade tensions, with China accounting for 46 percent of its sales last fiscal year. CEO Cristiano Amon emphasized a focus on its technology roadmap, product portfolio, and operational efficiencies as the company navigates the evolving macroeconomic landscape and trade challenges.
Samsung Electronics
Samsung Electronics has reported mixed financial results for its semiconductor division amid escalating U.S. trade tensions and AI chip export controls. The chip unit’s operating profit fell 42 percent to 1.1 trillion won ($770 million) despite preemptive chip stockpiling by customers wary of potential tariffs. Overall, revenue rose 10 percent to 79.1 trillion won, driven by strong smartphone sales and demand for AI servers. However, AI chip sales, particularly High Bandwidth Memory (HBM), underperformed due to tightened U.S. export controls to China, Samsung’s key market. The company supplied samples of its upgraded HBM3E products to major clients, projecting a gradual sales recovery in the second quarter. Samsung also accelerated smartphone production in Vietnam, India, and South Korea to mitigate potential tariff impacts. Despite uncertainties, CFO Park Soon-cheol expressed cautious optimism for a performance rebound in the second half, contingent on easing trade tensions and stabilization of AI chip demand, Reuters news report said.
ASM International
ASM International (ASMI) reported strong quarterly performance despite macroeconomic uncertainty due to global trade tensions. The Dutch chip equipment maker forecasted annual sales growth in the range of 10 percent-20 percent for 2025, driven by strong demand, particularly in the Chinese market and AI-related sectors. In the first quarter of 2025, ASM posted orders of 834.2 million euros, up from 697.9 million euros a year earlier. The company anticipates gross margins will be in the upper half of its target range of 46 percent-50 percent for 2025, excluding any potential impacts from tariffs. While demand in AI-related segments remains robust, other areas such as automotive, PC, and memory chips have been sluggish. Despite the uncertainty surrounding global trade policies, ASM remains optimistic about its prospects in AI chip demand, with its equipment being used by customers like TSMC to power next-generation chips. Sales growth in the second quarter is expected to increase by 1 percent-6 percent.
Teradyne
Teradyne has reported strong financial performance, with first-quarter revenue rising 14 percent to $686 million. The growth was driven by steady demand for its semiconductor-testing equipment, particularly in the AI space, as the complexity of AI systems requires sophisticated testing tools. The company’s semiconductor test segment, its largest, generated $543 million in the quarter. For the second quarter, Teradyne forecasted revenue between $610 million and $680 million. However, CEO Greg Smith noted limited visibility for the second half of the year due to uncertain trade policies and fluctuating end-market demand. Teradyne provides testing technology to major clients like Qualcomm and Texas Instruments, while also expanding its robotics systems offerings.
Baburajan Kizhakedath
