US Chip Stocks Surge on Proposed 'Made in America' Mandate
A new White House proposal could require a 1:1 ratio of domestic-to-imported chips, boosting domestic manufacturers like Intel.
The U.S. semiconductor sector rallied on Friday following reports of a new White House proposal aimed at aggressively boosting domestic chip manufacturing. The plan, which could mandate a one-to-one ratio of locally made to imported semiconductors, sent shares of domestic chipmakers soaring, with industry giant Intel (INTC) jumping as much as 8.87% on the news.
The proposed policy, presented to industry executives by Commerce Secretary Howard Lutnick, would require companies to match their volume of imported chips with domestic production or face steep tariffs. This represents a significant potential escalation of the ongoing effort to reduce America's reliance on foreign supply chains for the critical components powering everything from consumer electronics to advanced military hardware. According to reports, firms that would receive credits, allowing them to import chips tariff-free while their domestic plants are under construction.
This initiative builds on the foundation of the 2022 CHIPS and Science Act, a landmark piece of legislation that allocated nearly $53 billion in federal incentives to revitalize the domestic semiconductor industry. The CHIPS Act has already spurred over $450 billion in private investment and is between 2022 and 2032. The policy has been credited with creating tens of thousands of jobs and fostering new manufacturing hubs across the country.
While the goal of supply chain security is widely supported, analysts have noted the new 1:1 proposal presents significant hurdles. The global semiconductor supply chain is deeply integrated and complex, and a strict mandate could like Apple and Dell, which rely on a multitude of chips sourced globally for their products. Critics warn that forcing a rapid onshoring could lead to higher costs for consumers and disrupt established business models.
Investors, however, are focusing on the potential upside for domestic manufacturers. Companies like Intel, with its substantial U.S. manufacturing footprint and expansion plans, are seen as prime beneficiaries. The policy could provide a powerful incentive to accelerate investment in U.S.-based facilities. However, the risk remains that companies unable to meet the domestic targets for the data centers and AI clusters that are driving the next wave of technological growth. The industry now awaits official details to see how the administration plans to balance its national security ambitions with economic realities.