Monolithic Power Systems, Lattice Semiconductor, and Marvell Technology shares fell Friday. This followed the U.S. government's announcement of new tariffs.
The new duties range from 10% to 12.5%. These tariffs target 60 trading partners, including key semiconductor supply chain hubs like the European Union, Japan, South Korea, and Taiwan.
The Philadelphia SE Semiconductor index shed 3.1%. Investors priced in potential long-term margin compression and supply chain disruptions.
The semiconductor industry relies heavily on international trade for materials and manufacturing. This makes it vulnerable to new tariffs, raising concerns about increased costs and retaliatory actions.