Last week, there was talk of 100% tariffs on semiconductor manufacturers that don’t manufacture in the US. Apple, which has been under a lot of pressure to build iPhones in the US, announced billions in investments in American manufacturing. However, they will not be assembling the iPhones in the US. They’ll be making components and shipping them to Asia where they are assembled, but this will seemingly remove the tariff requirements on their homegrown silicon.

We partner primarily with US manufacturers. All of our Jardum-designed controllers, keypads, harnesses, etc., are assembled in the US. Many of these manufacturers are privately owned, US-based, small businesses too. All good, right?

Designing electronics is complicated, and part selection is a critical part of that. You aren’t just randomly picking a processor or power FET, or doohickey that meets the spec. The engineer evaluates the quality of the documentation, the availability of application engineers and support, the responsiveness of the sales folks, stock at distributors, and lead times. Then you rigorously test the parts in the application.

Throughout this process, it’s very obfuscated where the parts are being manufactured because these are global companies. Not too long ago, we got on a call with a critical component manufacturer’s application engineer. We were both working from home and figured out we were literally in the same neighborhood. I could ride my bike to engineering facilities for NXP, Silicon Labs, ARM, and STMicro here in Austin. But these companies have fabs all over the world. I, a measly small electronics company, don’t get to dictate where they build their parts. And it’s constantly changing! We get notifications that parts move from being built in Asia to Europe or tested in Arizona but built in Asia. There are also very specialized parts that a design hinges on. If you design a power circuit based on a low-RDS smart FET, you cannot just drop in an alternative. You have to tear up the entire board.

There are times when you can guarantee a part is made in the US. Back in the part shortage times of COVID, we had two options for CAN transceivers for a design. There was a common part, but it had a 26-week lead time. Then there was a MIL-spec part built in the US with a 6-week lead time. We needed the part now, so we went with the US part. It cost 3x as much.

Apple is a trillion-dollar company that committed to building parts in the US but keeps assembling in Asia. They will not have to pay the tariffs.

Jardum, a company privately owned by a couple of dudes, will buy the best components for the application and continue partnering with US small businesses to assemble the parts. Inevitably, our prices will go up as the tariffs are applied to our COGS and many US options are more expensive from the getgo. It’s not a line item on the final assembly because the final assembly is not affected by tariffs, just the raw goods.