Trump’s Semiconductor Tariff Plan Rattles Chip Stocks, Boosts Intel

President Trump's announcement of potential 300% tariffs on imported semiconductors sent shockwaves through the chip sector, with the PHLX Semiconductor Index dropping over 2%. Intel emerged as the sole outlier, its shares climbing nearly 6% amid reports of a potential government stake.

The TRUMP administration is reportedly considering using Chips Act funding to acquire a position in Intel, despite the President's previous criticism of the legislation. This follows a meeting between Intel CEO Lip-Bu Tan and President Trump, who had previously called for Tan's resignation over alleged China ties.

Market reaction was immediate and divergent. While most semiconductor stocks fell sharply, Intel's unique position as a potential beneficiary of government intervention created a stark performance gap. The administration's protectionist stance on chip manufacturing appears to be crystallizing into concrete policy actions.