Tariffs Could Shake Up Semiconductor Supply Chains. Here Are 2 Companies Investors Should Keep Their Eyes On.

Semiconductors are in everything from cars to computers, and many devices have far more than just one. President Trump recently said that tariffs on semiconductors are coming "in the very near future." That threat has sent tech companies scurrying to find solutions that will lessen the potential blow to their businesses.

New research from The Motley Fool shows that the U.S. is vastly intertwined with countries including China, Taiwan, Singapore, and many others in global semiconductor supply chains, which complicates any future chip tariffs. Here are two companies you should keep an eye on if semiconductor tariffs come to pass.

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1. Taiwan Semiconductor

Semiconductor-specific tariffs could deal a significant blow to Taiwan Semiconductor (NYSE: TSM), also known as TSMC. The company is the largest manufacturer of processors in the world -- making processors for Apple (NASDAQ: AAPL), Nvidia, and Qualcomm -- and makes an estimated 90% of the world's most advanced processors.

If the Trump administration were to enact tariffs on processors, it would likely increase the cost of production for TSMC and cause the company to raise prices for its customers, which in turn would cause prices to increase for the many products TSMC's chips are in.

In response to questions about tariffs on the company's first-quarter earnings call in mid-April, Taiwan Semiconductor CEO C.C. Wei said, "We understand there are uncertainties and risks from the potential impact of tariff policies. However, we have not seen any change in our customers' behavior so far. Therefore, we continue to expect our full year 2025 revenue to increase by close to mid-20s percent in U.S. dollar terms."

For now, TSMC has committed to investing $165 billion in the U.S. to increase chip production for customers. The company said on the call that the investment comes as demand for U.S. customers increases, but the result of having a new plant could also help offset potential tariff costs in the future.

Still, the company has acknowledged that the threat of new semiconductor tariffs could bring "uncertainties and risks," and that TSMC will have a clearer picture of any impact in the second quarter.

2. Apple

Apple is already feeling the effects of tariffs, with $900 million in additional costs in the most recent quarter because of current tariffs, and said that higher costs could be on the way. Some analysts think tariffs could eventually cost Apple more than double what it already has in each quarter.

And that's before any semiconductor tariffs. If those come soon, then the pain will likely be ratcheted up as Apple receives chips from Taiwan, South Korea, Japan, and Singapore. Those chips then go into the company's phones, computers, tablets, smartwatches, and AirPods.

Tariffs on processors could cause the price of an iPhone to go up so that Apple can maintain the high margins it typically receives from its products. It might also take on some of the cost itself to offset the impact on consumers.

While there's still plenty of uncertainty around tariffs, Apple appears to be planning for any potential impact from chip tariffs by sourcing more semiconductors from U.S. plants. CEO Tim Cook said on Apple's recent earnings call, "During calendar year 2025, we expect to source more than 19 billion chips from a dozen states, including tens of millions of advanced chips being made in Arizona this year."

Apple also committed to spending $500 billion in the U.S. over the next four years, part of which will go to expanding TSMC's semiconductor manufacturing in Arizona.

But don't get your hopes up just yet for Apple. Cook also said on the earnings call, "I don't want to predict the future because I'm not sure what will happen with tariffs." He added that he's having a difficult time seeing beyond June.

A lot of uncertainty right now

Both of these companies are tech leaders in their respective markets, but each faces a lot of tariff uncertainty right now. Keep that in mind if you're considering buying Taiwan Semiconductor or Apple.

The tariff situation doesn't mean investors should avoid these stocks entirely, but it might be a good idea to take a wait-and-see approach with both if you're considering buying right now.

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Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.