Shares of Intel and GlobalFoundries experienced an uptick in U.S. trading on Friday, following a report indicating that the Trump administration is considering measures to significantly reduce U.S. dependence on semiconductor imports by enhancing domestic manufacturing capabilities. At 10:32 AM, Intel experienced an increase of approximately 2.7%, whereas GlobalFoundries saw a rise of 5.6%. European chipmakers, in contrast, experienced a notable decline during Friday’s trading session. Dutch lithography equipment manufacturer ASML’s shares experienced a slight decline in early European trading, while other regional semiconductor companies such as ASM International and Infineon saw reductions exceeding 1%.

In Asia, the prominent contract chipmaker Taiwan Semiconductor Manufacturing Co experienced a decline of 1.9%. Samsung Electronics’ stock in South Korea declined by 3.3%, whereas SK Hynix shares experienced a drop of 5.6%. The White House is contemplating a policy mandating that chipmakers manufacture an equivalent quantity of chips domestically as their clients import from overseas. According to the reports, companies that do not adhere to the 1:1 production ratio will face a tariff. The plan aligns closely with Trump’s efforts to bolster domestic production in the U.S., as evidenced by the president’s recent imposition of a 100% tariff on all chip imports, while providing exemptions for companies engaged in U.S. manufacturing.

According to the reports, Commerce Secretary Howard Lutnick has engaged in discussions regarding the concept with executives from the chip industry. However, it was uncertain how Trump could realize this objective, considering the logistical challenges and unit cost dynamics associated with overseas chip manufacturing. Chips manufactured abroad are likely to be significantly less expensive than domestically produced ones, attributed to reduced input and labor costs. Additionally, establishing the necessary infrastructure for chip production is a process that demands considerable time and capital investment. This does not constitute an offer or recommendation from Investing.com. Refer to the disclosure here or eliminate advertisements. Intel has garnered significant media attention lately, subsequent to the U.S. government’s purchase of a 10% stake in the beleaguered chipmaker last month. Last week, NVIDIA allocated $5 billion towards Intel common stock, and this week, reports indicate that the company has engaged with Apple and Taiwan Semiconductor Manufacturing regarding potential investments or partnerships.

Intel’s shares have responded favorably to the recent news events. Following a surge of approximately 25% in response to the NVIDIA announcement, the stock experienced an additional increase of 15% due to the Apple news. They have experienced a 70% increase year-to-date. Analysts anticipate that the upward trend may persist. “… we anticipate that INTC stock will maintain an upward trajectory, not primarily due to fundamental factors, but rather because the Intel CEO has successfully kept the company in the public eye,” analyst KC Rajkumar remarked on Friday. “Following a prolonged period of neglect spanning more than a year, institutional investors might find themselves compelled to reassess their stance on the stock.”