Trump's Plan for 300% Semiconductor Tariffs Weighs on Chip Stocks, Except Intel. Here's Why
President Trump told a group of reporters aboard Air Force One Friday morning that he could put tariffs on imported chips as soon as next week."I'll be setting tariffs next week and the week after, on steel and on, I would say chips—chips and semiconductors, we'll be setting sometime next week, week after," the president said in-flight, on the way to meet with Russian President Vladimir Putin in Alaska. "I'm going to have a rate that is going to be 200%, 300%," Trump said. The White House didn't immediately respond to a request for comment.
The PHLX Semiconductor Index (SOX) was recently down more than 2%. Intel was among a handful of the index's constituents that was unscathed; shares were up nearly 6%.
Reports that the Trump administration is considering taking a stake in Intel are giving the stock a boost. Discussions have included tapping the Chips Act—of which Trump has been a critic—to partially fund a stake in Intel, according to Bloomberg, citing people familiar with the matter. Deal talks follow on the heels of Intel CEO Lip-Bu Tan's meeting with President Trump on Monday, after Trump publicly called for Tan's resignation, citing purported China conflicts.
A White House spokesperson told Investopedia any discussions "should be regarded as speculation unless officially announced by the Administration." Intel did not immediately respond to queries about the talks.
Some analysts see the Trump administration as a potential "hero customer," which Intel could use to fund development for its 14A process, a next-gen chip manufacturing technology that could boost chip speeds.
"Intel could of course use money to help capitalize the fabs given the heavy losses and cash burn, and help to support them during the (likely) years it will take to build up substantial customer base," Bernstein analysts led by Stacy Rasgon wrote in a report Friday. Intel is already leaning on private equity deals to support building out semiconductor fabrication plants in and outside the U.S.
However, what Trump might want in return is an outstanding question, with investors waiting to see if Trump can "Make Intel Great Again," the analysts said. The administration recently secured revenue-sharing deals with Nvidia (NVDA) and Advanced Micro Devices (AMD) in exchange for export licenses to resume sales of key AI chips to China.Other market observers including Jim Cramer, and Morningstar's Brian Colello also said Intel could likely use the help. "A stake could go a long way toward finishing what Gelsinger couldn't afford to build but did it anyway," Cramer tweeted Friday, referencing former Intel CEO Patrick Gelsinger, who stepped down in December.
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