Categories: Techno

Smartphones, PCs, tablets, connected objects… why your electronic devices risk costing more in 2025

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The technological standoff between Washington and Beijing continues, and this one hits hard the semiconductor industry. The United States, anxious to preserve its technological supremacy, is pushing its companies to cut ties with China. This forced restructuring suggests undesirable repercussions for us, consumers. As early as 2025, all our electronic devices risk seeing their prices increase.

A forced divorce with global consequences

The American giants Applied Materials and Lam Research, true pillars of the manufacture of electronic chips, are now imposing a hard line on their suppliers: banning all components of Chinese origin from their supply chains. Another even more draconian measure: these companies reject any partnership with companies with Chinese investors or shareholders

In Plainview, the manufacturer Veeco has even made this position official in writing, demanding the immediate cessation of any collaboration with new Chinese suppliers and the end of existing partnerships by the end of 2025.

Semiconductor supply chains are already highly complex and interconnected. Removing a major player like China from these chains will further complicate them and necessarily increase costs and production lead times. Moreover, since China's economy relies heavily on the production of electronic components, its exclusion could, in the worst case, lead to global shortages.

The battle over semiconductors is not about to die down and could lead to an escalation of trade tensions: this is the price to pay for technological interdependence.

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The perilous quest for new sources of supply

The industry is facing a thorny paradox. China represents the largest market for American equipment manufacturers, and finding competitively priced alternatives remains very complicated. The example of Shenyang Fortune Precision Equipment perfectly illustrates this impasse: despite opening a factory in Singapore, a stone's throw from the offices of Applied Materials, the company is denied any authorization to deliver because of its Chinese roots.

Some desperate suppliers are trying complex stratagems, such as creating holding companies in third countries or joint ventures in Malaysia, to maintain their commercial ties with the United States.

This massive reorganization comes in an already tense political context. The U.S. Department of Commerce has already imposed strict restrictions, requiring equipment manufacturers to obtain special licenses to share technical information with their Chinese suppliers. These temporary licenses will expire at the end of 2025, a deadline that will accelerate the transformation of the sector.

Europe, Japan, and the United States are pouring tens of billions of dollars into reshoring semiconductor production. However, this accelerated shift to supply chains that exclude China will have direct impacts on our walletsand there is little doubt that our everyday electronics are becoming increasingly inaccessible.

  • The United States is forcing semiconductor companies to cut ties with China, which will increase production costs.
  • Complex supply chains and reliance on China are likely to cause shortages and delays.
  • Consumers could see prices for electronics rise as early as 2025.

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Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116

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