chip industry sounds alarm over h1-b visa changes

2025-09-23 general

Washington, Tuesday, 23 September 2025.
semi, representing the electronics design and manufacturing supply chain, is pushing back on recent h1-b visa policy shifts. the group insists access to global talent is vital. this access is needed to maintain america’s competitive edge in the semiconductor industry. with the u.s. aiming to ramp up domestic manufacturing, semi stresses the need for policies. these policies will attract and retain skilled workers. the industry body’s statement comes amid concerns that new restrictions could hinder innovation and growth, potentially costing companies $100,000 per visa.

new h-1b fee sparks market concerns

President Trump’s recent proclamation introduces a $100,000 application fee for h-1b visas, effective from September 21, 2025, to September 21, 2026 [3]. The White House clarified that this is a one-time fee for new applicants [3]. This policy change has immediately impacted the market, creating uncertainty for companies relying on the h-1b visa program [3]. Microsoft reportedly urged its h-1b and h-4 visa employees to return to the u.s. before the september 21 deadline, highlighting the immediate concerns triggered by the new fee [6]. The annual h-1b program typically offers 65,000 visas, with an additional 20,000 for advanced degree holders [3].

indian it firms face stock decline

The Indian government has expressed concerns about the potential humanitarian consequences of the new visa fee [3]. India’s commerce minister, piyush goyal, suggested that the u.s. might be apprehensive about indian talent [3]. The immediate market reaction saw share prices of infosys and tata consulting services, major recipients of h-1b visas, fall by approximately 3% [3]. This decline reflects investor apprehension regarding the increased costs and potential limitations on accessing skilled labor from india, which accounted for 71% of approved h-1b visas last year [3].

economists warn of potential economic fallout

Economists are beginning to weigh in on the potential long-term economic consequences of the $100,000 h-1b visa fee [3]. Atakan Bakiskan, an economist at berenberg, warns that making it expensive for companies to attract foreign talent could lead to a ‘brain drain,’ negatively impacting productivity [3]. Bakiskan also suggests that this policy, combined with other factors, could raise the risk of a financial crisis and weaken the dollar in the long term [3]. Kathleen Brooks, research director at xtb, notes that while large companies can afford the fees, other sectors like healthcare and education may struggle, potentially affecting recruitment [3].

uscis data shows registration shifts

U.S. Citizenship and Immigration Services (uscis) data indicates a shift in h-1b visa registrations [4]. For fiscal year 2026, uscis announced it had received enough registrations, selecting 118,660 beneficiaries from 120,141 registrations [4]. The number of eligible unique beneficiaries decreased from approximately 442,000 for fy 2025 to approximately 339,000 for fy 2026, a -23.303 ≈ -23.3% reduction [4]. Uscis reported a 26.9% reduction in eligible registrations for fy 2026 compared to fy 2025, suggesting a potential impact from policy changes and increased costs [4].

Bronnen

semiconductor policy h1-b visa