Investing.com -- US semiconductor equipment manufacturers may have to bear an additional cost of over $1 billion annually due to new tariffs, according to industry estimates Reuters discussed with officials and lawmakers in Washington last week. The three largest US chip equipment makers, Applied Materials (NASDAQ: AMAT ), Lam Research (NASDAQ: LRCX ) (NASDAQ:LRXC), and KLA (NASDAQ: KLAC ), could each face losses of approximately $350 million annually due to these tariffs. Smaller competitors like Onto Innovation (NYSE: ONTO ) are also expected to encounter tens of millions in added expenses.

These potential costs to the chip equipment industry, and the talks about them between industry executives and US officials, are being reported here for the first time. The companies involved produce some of the world’s most desirable chipmaking equipment, which often requires thousands of specialized parts.

The industry has already seen significant revenue losses following a series of export controls put in place by former US President Joe Biden. These controls were designed to limit the export of advanced semiconductor manufacturing equipment to Chinese entities, which has resulted in billions in lost revenue for US firms.

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