Medical Device Industry at Risk as U.S. Probes Semiconductor Imports

The U.S. Commerce Department’s Section 232 investigation into semiconductor imports could raise costs for medical device makers if it leads to new tariffs. The probe, assessing national security risks from reliance on foreign-made semiconductors, may impact chip-intensive medical technologies such as imaging systems and AI-based diagnostics. Experts warn that added costs could pressure margins in an industry already facing tight cost controls and long planning cycles. Many medical devices rely on chips manufactured in East Asia, including Taiwan and South Korea. PwC’s Scott Almassy noted the potential for significant financial strain, especially as companies may struggle to pass costs to customers. Past tariff actions under Section 232 have impacted sectors like steel and automotive. Trade group AdvaMed has sought tariff exemptions for medtech but with limited success. While domestic production could reduce future risk, reshoring is expensive. The investigation must conclude within 270 days and could reshape the global semiconductor supply chain for healthcare.

13-05-2025