US President Donald Trump's recently imposed tariffs could cost US-based semiconductor equipment suppliers more than $1 billion a year, Reuters reported Wednesday, citing sources familiar with matter.

Applied Materials (AMAT), Lam Research (LRCX), and KLA (KLAC) could each face $350 million in annual financial losses, while Onto Innovation (ONTO) and smaller peers face tens of millions in additional expenses, the report said.

The projected losses are the result of lower international demand for older-generation equipment, as well as increased expenses for sourcing alternative components and managing tariff compliance, the report added.

Officials and executives met in Washington with lawmakers and the industry group SEMI to outline the anticipated impact of the duties, the report said.

Applied Materials, Lam Research, KLA, and Onto Innovation did not immediately respond to MT Newswires' request for comment.

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