Intel stock extends gains after report of possible U.S. government stake
Investing.com -- President Donald Trump announced a 100% tariff on chips and semiconductors built outside the United States, a sweeping escalation in trade policy targeting global technology supply chains. The tariffs, unveiled during a press conference at the White House with Apple (NASDAQ:AAPL) CEO Time Cook, will spare companies that are actively building or have pledged to build chip infrastructure within the U.S.
“So in other words, we’ll be putting a tariff of approximately 100% on chips and semiconductors,” Trump told reporters. “But if you’re building in the United States of America, there’s no charge. Even though you’re building and you’re not producing yet... if you’re building, there will be no charge.”
This exemption would likely extend to a broad array of firms already announcing U.S. projects or expanding existing operations, regardless of whether domestic production is operational today. That interpretation seemingly offers protection to high-profile investments such as Taiwan Semiconductor Manufacturing Company’s $165 billion commitment in the U.S. or Samsung’s new foundry complex in Texas.
The news comes as Cook announced a $100 billion increase in Apple’s U.S. investment pledge, bringing its total to $600 billion over four years, including a wide-ranging American Manufacturing Program. “This includes new and expanded work with 10 companies across America,” said Cook. “They produce components that are used in Apple products sold all over the world, and we’re grateful to the President for his support.”
Shares of Apple soared on the news, rising 5.1% during the trading session and another 3.5% after hours as investors saw the company positioned advantageously against the backdrop of heightened trade barriers. Its U.S.-based semiconductor strategy now encompasses silicon production with TSMC, packaging with Amkor (NASDAQ:AMKR), and chip equipment manufacturing with Applied Materials (NASDAQ:AMAT).
Other tech companies that previously vowed investment in the U.S. also rose in afterhours trade, including Micron (NASDAQ:MU) (+4.06%), Intel (NASDAQ:INTC) (+1.4%), and Nvidia (NASDAQ:NVDA) (+0.6%). Apple partners included in its program, such as GlobalFoundries (NASDAQ:GFS) (+6.2%), Corning Incorporated (NYSE:GLW) (+5.2%), and Texas Instruments (NASDAQ:TXN) (+2.8%), all saw stock gains as well.