These chip stocks are rising off Trump's latest proposal to boost U.S. manufacturing

By Britney Nguyen

The Trump administration reportedly wants U.S. companies to manufacture the same amount of chips stateside as customers are importing from abroad

Shares of GlobalFoundries were up more than 8% at the market close on Friday.

Shares of U.S. chip manufacturers closed higher on Friday after a report that the Trump administration is considering a new plan to move more chip production stateside.

In another effort to bolster domestic chip making, the White House is looking to make U.S. companies manufacture the same amount of chips that customers are importing from producers abroad, the Wall Street Journal reported, citing unnamed people familiar with the matter. The companies will reportedly be asked to pay a tariff if they cannot keep up with a 1:1 manufacturing ratio.

Chip manufacturing and design company GlobalFoundries Inc. (GFS) saw its stock up 8.4% on Friday at the close, while Intel Corp.'s (INTC) stock was up 4.4%. Both companies have a chip-manufacturing presence in the U.S.

The policy under consideration is the latest development in the Trump administration's efforts to boost chip manufacturing in the U.S. The push has also been a boon to Intel's faltering business, in which the government took an unprecedented stake last month.

The U.S. has been concerned about the strategic importance of having strong domestic chip-making capacity, especially amid the artificial-intelligence boom and rising tensions with China. Nvidia Corp. (NVDA), for example, heavily relies on Taiwan Semiconductor Manufacturing Co. (TW:2330) in Taiwan, which some national security experts believe could be at risk of a Chinese invasion.

In August, President Donald Trump said he would put a 100% tariff on chips and semiconductors, but that companies "building" in the U.S. would be exempt from the rule. The policy under consideration is reportedly an outgrowth of the tariff plan, according to the Wall Street Journal.

See more: Why Nvidia and other chip stocks are shrugging off Trump's latest tariff threat

If the policy is implemented, a company would commit to manufacturing a certain number of chips in the U.S., then be held to that quantity as it completes its manufacturing plant, the Journal reported. During that time, the company and its customers can reportedly import chips without paying the tariff, and there could be leniency as the program starts off in order to allow companies time to meet the requirements.

"America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security," White House spokesperson Kush Desai said in a statement shared with MarketWatch. "Unless officially announced by the administration, however, any reporting about our policymaking should be treated as speculative."

See more: Trump's clash with Intel's CEO isn't just politics - it's a crucial test for U.S. chip making

As part of the push to increase the number of American-made chips, Intel agreed to let the U.S. government take a 10% stake in the company in August and said the government's $8.9 billion investment in its stock reflects "the confidence the administration has in Intel to advance key national priorities and the critically important role the company plays in expanding the domestic semiconductor industry."

The chip pioneer's struggling foundry business has been a focus in the industry as the Trump administration pushes for more homegrown chip making - especially as Intel has lost share to TSMC, which now dominates chip manufacturing.

Despite losing its competitive edge over the years, Intel still has foundries, known as fabs, in the U.S., while its competitors are mostly fabless and therefore outsource production to companies such as TSMC. However, Intel has warned that it could give up on its chip manufacturing if it doesn't find a significant external customer for its next-generation 14A process node.

Earlier this month, Intel announced an agreement to design and manufacture chips with Nvidia, which in turn is making a $5 billion investment in Intel's stock. The chip maker has also reportedly sought an investment from Apple Inc. (AAPL), but the companies are still in the early stages of talks, and it's possible no agreement will come out of it, according to Bloomberg. TSMC has also been approached by Intel for an investment or a partnership for manufacturing, according to a separate Wall Street Journal report.

Read: Will Apple deliver Intel its next lifeline? Here's why analysts think a deal would make sense.

-Britney Nguyen

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-26-25 1619ET