Intel (NASDAQ:INTC) and GlobalFoundries (NASDAQ:GFS) shares climbed in early U.S. trading on Friday, following a Wall Street Journal report that the Trump administration is exploring ways to reduce American dependence on imported semiconductors by encouraging domestic production.
Ahead of the market open, Intel was up about 2.9%, while GlobalFoundries surged more than 5%.
In contrast, European semiconductor companies struggled in early trading. Dutch lithography equipment maker ASML saw slight declines, and other regional players like ASM International and Infineon fell by over 1%.
Asian chipmakers also faced losses. Taiwan Semiconductor Manufacturing Co (NYSE:TSM) dropped 1.5%, South Korea’s Samsung Electronics fell 3.3%, and SK Hynix slid 5.6%.
According to the WSJ, the White House is considering a policy that would require chip producers to manufacture in the U.S. the same quantity of semiconductors as their customers import from abroad. Companies failing to meet this 1:1 production ratio could face tariffs.
This initiative aligns with Trump’s broader push for more domestic manufacturing. Last month, the president imposed a 100% tariff on all chip imports, while granting exemptions to firms producing in the U.S.
Commerce Secretary Howard Lutnick has discussed the proposal with executives in the semiconductor sector, the WSJ reported.
However, significant challenges remain, as producing chips domestically involves higher costs and complex logistics. Imported semiconductors are generally cheaper due to lower labor and input costs abroad, and establishing the necessary infrastructure for local production is both capital- and time-intensive.
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