The Trump administration is hitting sensors and other electronics companies with multiple challenges, including months of repeated changes to tariffs and a new policy the president introduced on Friday to raise the H-1B visa application fee to $100,000.
In a written proclamation that officially took effect on Sunday, Trump said tech companies have “prominently manipulated the H-1B system, significantly harming American workers in computer-related fields.”
The share of IT workers in the H-1B program grew from 32% in 2003 to average of 65% over the last five fiscal years, Trump said. To take advantage of lower labor costs incentivized by H-1B, he said some companies close their IT divisions, fire American staff and outsource to lower-paid foreign workers. He called such abuses a “national security threat.” The $100,000 will remain in effect 12 months, unless extended, according to the proclamation.
Fee seen as potential boon to foreign companies
Many tech hiring experts believe the new fee will be a boon to foreign countries that won’t be charging such a fee and are in equally need of tech talent. One expert, Metaview’s co-founder Shahriar Tajbakhsh in a LinkedIn post downplayed the $100,000, calling it a “rounding error” when compared to the value that a qualified H-1B worker can create for his team.
Meanwhile, some hiring experts see pain for US tech companies, including the largest companies that use H-1B visas to obtain qualified talent from abroad. Those at the top of the list include Amazon with 14,000 H-1B holders and Microsoft, Meta, Apple and Google—each with more than 4,000 H-1B holders in fiscal 2025, according to US Citizen and Immigration Services.
Many companies are not commenting on the new fee, including Nvidia and Intel, that typically hire H-1B workers and told Fierce that they were not commenting on the new $100,000 fee. Intel ranked 17th in the federal list of H-1B workers approved for hiring in fiscal 2025, with 1,698, while Nvidia ranked 23d, with 1,473.
Reaction from SEMI trade group
SEMI, a global industry association that represents 3,000 member companies and more than 1 million engineers and other professionals, issued a statement on the H-1B change, saying it is “concerned about added strain at a time when the industry faces significant workforce shortages.”
SEMI has been supportive of some Trump initiatives, including keeping corporate taxes at current levels, and said its members “recognize the Administration’s commitment to securing US leadership in the semiconductor value chain.” SEMI added it looks forward to working with the administration to “ensure policies meet both national security needs and strengthen the talent base necessary to support companies.”
Jack Gold, a veteran tech analyst who has followed the use of H-1B visas for years, called the $100,000 fee a “terrible move.” He said Trump is likely moving to “limit or even eliminate H-1B visa holders from tech.” If tech companies cut their hiring as a result, “there is going to be real harm done,” he added.
The president apparently believes all tech jobs can be filled by Americans and companies are resorting to H-1Bs because imported labor is cheaper, Gold added. In reality, “companies have to import H-1Bs because there simply are not enough tech educated Americans to fill all the vacancies…Foreign competitors will be advantaged…”