Intel, GlobalFoundries gain ground on Trump's potential 1-to-1 chip rule

U.S. semiconductor companies, including Intel and GlobalFoundries, experienced significant stock gains following news of a proposed Trump Administration policy requiring a 1:1 domestic production to import ratio for semiconductor chips.

Intel's stock rose by 3% and GlobalFoundries by 9%, while other companies like Micron Technology are also expanding their manufacturing capabilities in the U.S., with Micron’s shares increasing by 1%.

The proposed regulation would allow companies to import a certain number of chips tariff-free if they commit to manufacturing an equivalent amount domestically, aiding in the transition to U.S. production.

Recommendation Rating: Positive Outlook for Semiconductor Sector

Shares of prominent U.S. semiconductor firms, such as Intel (NASDAQ: INTC) and GlobalFoundries (NASDAQ: GFS), experienced significant gains on Friday following news regarding a possible new policy by the Trump Administration. This proposed regulation would mandate that companies produce an equal number of semiconductor chips domestically in the U.S. as they import from international manufacturers, establishing a 1:1 ratio between domestic production and imports.

During early market trading, Intel's stock rose by 3%, while GlobalFoundries saw a remarkable increase of 9%. Other industry players, including Micron Technology (NASDAQ: MU), TSMC (TSM), and Samsung Electronics (OTCPK: SSNLF), are also in the process of developing major manufacturing facilities within the U.S., with Micron’s shares rising by 1%.

According to the suggested plan, if a company promises to manufacture one million chips in the U.S., it would be allowed to import that same amount tariff-free until their domestic production facility becomes operational.

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