The semiconductor manufacturing sector now ranks tariffs and trade policy as its top concern, surpassing talent and labor issues in the latest KPMG Global Semiconductor Outlook survey.
This shift reflects heightened uncertainty around global trade dynamics and the potential cost impacts of evolving tariff regimes.
According to the survey, conducted with 151 industry executives in Q4 2025, about 54% of leaders are focused on geographically diversifying their supply chains, while 45% say building greater flexibility to handle geopolitical risks is their number one strategic priority.
Despite these concerns, optimism remains; roughly 93% of respondents expect revenue growth in 2026, fueled largely by strong demand for AI and data center technologies.
The tariff issue has been underscored by proposed U.S. trade actions aimed at reshaping global chip flows, including discussions of high levies on semiconductor imports tied to domestic production requirements.
Industry leaders see both risks and opportunities: while tariffs could add cost pressures and complicate supply chains, government incentives such as tax credits and funding under the CHIPS and Science Act also support domestic investment.
In short: semiconductor executives place tariffs and trade policy at the forefront of challenges for the coming years, alongside supply chain resilience and global diversification strategies.
