Global Trade Tensions: How US-EU Tariffs and Taiwan’s Export Curbs Are Reshaping the Semiconductor Landscape

On May 23, 2025, the White House proposed sweeping 50% tariffs on all EU imports, targeting long-standing disputes over agriculture and energy. But what does this mean for semiconductors?

TechInsights analysis shows the immediate impact on chip supply is likely minimal. The EU is not a primary source of advanced processors, memory, or displays for the US—Asia, especially Taiwan and South Korea, dominate these segments. Even systems built in the EU often rely on Asian components.

Still, the proposed tariffs could shake business confidence. Companies may delay IT spending, data center expansion, or cloud upgrades as they reassess risks. The tariffs are on hold until at least July 9, 2025—but uncertainty itself could slow market momentum.

Taiwan’s Export Curbs Target Huawei and SMIC

Meanwhile, Taiwan has restricted exports of semiconductor manufacturing tools to China’s Huawei and SMIC. This move builds on US and Dutch bans, tightening access to essential equipment like wafer etching and cleaning tools.

For China’s domestic chipmakers, these restrictions are a serious setback. Despite progress in mature-node production, China still relies on foreign tech for cutting-edge logic chips. Taiwan’s curbs could delay its self-sufficiency goals by years.

These actions add stress to global supply chains—and opportunities for competitors in Taiwan, Korea, and the US. As China’s chip ambitions stall, rivals may see growing demand.