SG tech firms face risks from 100% US semiconductor tariff

Intel’s US investments may ease tariff impact.

Singapore technology companies could face mixed impacts from the planned 100% US tariff on semiconductor imports, depending on how major US multinationals negotiate with the Trump administration, an analyst said.

William Tng, research analyst at CGS International Singapore, said Frencken’s exposure is indirect through customers such as ASML and Applied Materials, whilst AEM faces greater risk as it ships to Intel, whose main testing and assembly facilities are outside the US.

Intel’s US investments and a potential gradual rollout of tariffs could help limit the impact, he added.

Tng warned the worst-case scenario is demand destruction, with costs passed along US customers, suppliers and consumers, unless new technology innovation spurs demand.

For the second half of 2025, the technology outlook remains muted, with tariffs weighing on decision-making.

Tng also highlighted that the recent rally in Singapore’s small- and mid-cap tech stocks has been liquidity-driven rather than earnings-based. “FRKN (Add, TP S$1.91) remains our top pick for the Singapore tech space,” he said.

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