Ireland’s semiconductor and tech industries were briefly buoyed earlier this month after the Trump administration announced they would be exempt from a sweeping new tariffs plan. However, that relief quickly evaporated when U.S. Commerce Secretary Howard Lutnick clarified that sector-specific tariffs are still on the way — and this time, they won’t be subject to negotiation.
While full details are yet to emerge, the announcement has sparked widespread confusion across Ireland’s semiconductor sector, which is heavily integrated into global supply chains. John Blake, general manager of MIDAS Ireland, the industry association for microelectronics, pointed to the extreme complexity of chip production, which often involves materials, manufacturing, and assembly processes spread across multiple countries.
“The supply chain is incredibly complex,” Blake said, highlighting how chips designed or partially built in Ireland can pass through several nations before reaching consumers.
This complexity is a key reason why applying tariffs could have unintended and far-reaching consequences. Dr. Kevin Berwick of TU Dublin noted that even defining where a semiconductor is “made” can be tricky, given how manufacturing and assembly stages are split internationally.
The timing of the tariff threat is particularly difficult, coming as the industry is already undergoing major changes. Intel, one of Ireland’s largest tech employers, recently announced global job cuts amid fierce competition from fabless chipmakers like Nvidia and AMD, which design chips but outsource manufacturing.
Despite the current uncertainty, Ireland’s semiconductor sector remains strong, employing over 20,000 people across companies like Intel, Analog Devices, Qualcomm, and a host of homegrown firms. Demand for chips continues to surge, driven by everything from smartphones to cars and household appliances.
However, concerns remain that the U.S. push to bring semiconductor manufacturing back home could reshape global industry dynamics. While both the U.S. and EU have launched incentive programs to encourage domestic chip production, experts caution that building new factories is a slow and complex process — far beyond the timeframe of a single presidential term.
“Even if a fab were announced today, it wouldn’t be producing silicon before the next president takes office,” said Dr. Berwick.
For now, Irish firms are adopting a cautious “wait and see” approach. While few expect an immediate exodus of investment from Ireland, long-term uncertainty about global trade flows could dampen future growth plans. As Jason Lynch of Equal1, an Irish quantum chip company, put it: “Friction between economic partners could slow things down — but we’ll adapt.”
Ultimately, the sector’s resilience will depend not just on navigating tariffs, but also on broader global economic conditions and continued investment in talent and innovation.
