[News] How Major Chipmakers Weigh in on Tariff Uncertainty: Key Takeaways from Intel, TI, NXP and STM

Amid tariff uncertainty under Trump, major U.S. and European chipmakers shared their outlooks in recent earnings calls. Some reported no clear shifts in customer behavior, while others outlined plans and potential impact timelines. Here’s a quick read on how Intel, TI, NXP, and STMicroelectronics are bracing, which offers an early signal for what the chip industry may be facing.

Tariffs Revive Demand for Intel’s Older Chips

As per Reuters and Tom’s Hardware, the U.S.-China trade war is unexpectedly boosting demand for Intel’s older PC and server chips, such as Raptor Lake built on 7nm.

The reports note that economic uncertainty and rising costs from global tariffs are prompting customers to turn to more affordable, previous-generation processors, instead of Team Blue’s next-gen AI PC chips for laptops such as Lunar Lake and Meteor Lake.

Intel expects Q2 revenue of $11.2–12.4 billion, down from $12.67 billion in Q1. Reuters warns that China’s hefty retaliatory levies on U.S.-made semiconductors are clouding Intel’s outlook, adding that the company expects second-quarter per-share adjusted profit to merely break even.

Texas Instruments: China Ties Bring Rising Risks

Meanwhile, Texas Instruments, another U.S. chipmaker and IDM, also flagged possible tariff impacts ahead, with CEO Haviv Ilan saying the real effects may surface in late 2025 or 2026 as policy remains in flux, according to Reuters.

For now, TI is expected to see certain cyclical demand recovery and possibly some tariff pull-ins, which drives its relatively rosy Q2 outlook, the report adds. TI expects its Q2 revenue to fall between $4.17 billion and $4.53 billion, slightly higher than $4.07 billion in Q1.

However, like Intel’s reliance on China, TI reportedly earns roughly 20% of its yearly revenue from China, leaving it exposed to the escalating tariff battle between Beijing and Washington, as per Reuters.

NXP: Cautiously Optimistic on Tariff Impact

Meanwhile, major European chipmakers NXP, along with STMicroelectronics and Infineon, continues to face sluggish demand for legacy chips used in EVs and smartphones. As per Bloomberg, NXP’s Q1 revenue dropped 9% to $2.84 billion, and the company expects Q2 sales could further decline to $2.8 billion to $3 billion.

With CEO Kurt Sievers set to retire later this year, Rafael Sotomayor, a current NXP executive, will become president immediately and take over as CEO on October 28. The company also warned of navigating “a very uncertain environment” due to tariffs, the report adds.

The company remains “cautiously optimistic” amid a tough market shaped by unpredictable tariff effects, according to Bloomberg.

STMicroelectronics: 2025 Sales Likely Decline

STMicroelectronics, on the other hand, seems to be more optimistic. As per Reuters, the company has not observed any panic or immediate reactions from customers.

In spite this, STMicro remains cautious about their effect on global automotive production, as the company reportedly reiterated the urgency of waiting to see how the situation unfolds, as adjusting or restructuring the supply chain would require significant effort in terms of qualification and product transfer, the report notes.

Though STMicro did not offer full-year guidance, President and CEO Jean-Marc Chery indicated that he expects revenue to be lower than last year’s figures, as per Reuters.

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• [News] Intel Signals Tariff Impact: Weaker Q2, Slower AI PC Chip Demand; Reveals Talks with TSMC

(Photo credit: Texas Instruments)