GlobalFoundries Stock Rallies on Potential U.S. Semiconductor Tariff Proposal

Shares of GlobalFoundries surged 6.7% Friday afternoon following a Wall Street Journal report detailing a TRUMP administration proposal to impose phased tariffs on semiconductor imports. The "1:1" plan would require chipmakers to match overseas imports with domestic production—or face 100% tariffs—potentially driving demand for U.S.-based foundries like GlobalFoundries.

While the specialty chip manufacturer doesn't produce cutting-edge AI processors dominated by Taiwanese firms, the policy could reshore significant lagging-edge production. The proposal includes import credits for companies committing to stateside manufacturing, offering transitional relief during capacity ramp-ups.

Friday's rally contrasts with GlobalFoundries' modest 3% revenue growth last quarter, suggesting markets are pricing in geopolitical tailwinds rather than operational performance. Semiconductor supply chain localization remains a focal point as election-year trade policies take shape.