Trump wants to raise H-1B visa fees to over $100,000. It could hurt semiconductor manufacturing

The Trump administration is proposing to drastically increase H-1B visa fees to over $100,000. 

United States Citizenship and Immigration Services says the fee increase will help pay for the federal government's costs in administering the program. Application fees currently land between $3,000 to $5,000 depending on the case.

But industry experts warn that could hinder the U.S. ability to onshore semiconductor manufacturing, including in Arizona, which has become a hub for production with the expansion of companies like TSMC.

H-1B visas are widely used in the semiconductor industry, including TSMC and Intel.

Ellis, an immigration law firm, estimates TSMC’s Arizona branch has sought over 300 H-1Bs since launching its north Phoenix buildout in 2020.

As of last year, Intel has sponsored over 2,000.

But Steve Zylstra with the Arizona Technology Council says the increase in fees could impact the whole industry, not just TSMC locally.

“Making it more difficult and more expensive to bring talent here in the United States that has very specialized capabilities is not good for the industry and not good for our economy,” Zylstra said.

TSMC brings in many Taiwanese nationals, who have become experts in making the world’s most advanced chips, to help with the buildout in north Phoenix.

While those workers don’t use H-1B visas, Zylstra says the company sponsors other workers, like non-citizens who study in the United States and apply for jobs.

Zylstra says TSMC and others have partnerships in which many non-citizens pass knowledge onto American workers.

“Through various workforce programs with the community colleges, setting up apprenticeships and so on,” Zylstra said. “So I think there's going to be plenty of opportunity at both Intel and TSMC for American workers who want to work in the semiconductor industry.”

But he says the increase in fees could change how the tech industry brings experts into the field.

The proposal also comes at a time when Amkor is building the first U.S.-based advanced semiconductor packaging facility in Arizona. Packaging is a critical step in making computer chips, and is mostly done overseas.

The Trump administration attempted to raise H-1B fees last year by a similar amount. But a judge ruled in June that the administration had no authority to do so. 

The Department of Homeland Security reintroduced a similar proposal on Monday with a 30-day period for public comment.

But Jeff Joseph with the New York-based immigration law firm Manifest Law says the Trump administration has rarely taken information provided during those periods into account.

“They're not taking into account any of the considerations or any of the comments that are being made and really discounting it and going with the original proposal. And I anticipate that's exactly what they'll do in this case,” Joseph said.

Joseph says that if the administration succeeds in implementing the fees, it could cause manufacturers within the semiconductor industry to rethink how they hire people with specialized skills.

“Other companies are simply saying this doesn't make sense. Let's shift these operations abroad to companies that have more, you know, friendly immigration policies,” Joseph said.

And when the United States is competing with countries on artificial intelligence and other technologies, Joseph says the move could cause national security concerns.

“The competition for technology is not on our iPhones. It's protecting us from danger from our, you know, countries that want to attack us,” Joseph said.