Why GlobalFoundries Rallied on Friday
Shares of U.S.-based semiconductor manufacturing company GlobalFoundries (NASDAQ: GFS) rallied on Friday, with the stock up 6.7% as of 1:50 p.m. ET.
Last night, the Wall Street Journal published an article outlining a new Trump administration proposal to phase in tariffs on semiconductors. If such a tariff were implemented, it could boost demand for U.S.-based chipmaking, which could help boost demand for GlobalFoundries' domestic services.
In the WSJ report, the Trump administration's new proposal would mandate that chip companies would have to, over time, domestically produce an equal amount of chips in the U.S. relative to the amount they import from overseas in order to avoid a 100% tariff on imported chips. If a company commits to producing a certain amount of chips in the U.S., it would earn a "credit" in an equal amount of near-term imports, in order to provide time to ramp its domestic production.
Source Fool.com
