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GlobalFoundries chief says tariffs could benefit US chipmakers
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GlobalFoundries chief says tariffs could benefit US chipmakers
Mar 4, 2025 3:22 PM

March 4 (Reuters) - GlobalFoundries ( GFS ) Chief

Executive Officer Thomas Caulfield said on Tuesday that U.S.

tariffs on foreign-made chips could help U.S. chip manufacturers

by boosting demand for domestically made chips.

Caulfield told an investor conference hosted by Morgan

Stanley the $52.7 billion CHIPS and Science Act and an

investment tax credit on chip-making equipment had helped boost

U.S. capacity to make chips. Tariffs that would make foreign

chips more expensive would help steer customers toward the chips

being produced in U.S. factories, he added.

"I don't think one or the other is enough. I do believe you

need (the) CHIPS (Act) and the (investment tax credit) to create

the capacity, and the tariffs to kind of create the dynamics to

make the demand want to come home," said Caulfield, who plans to

transition to an executive chairman role next month.

Caulfield's comments come as some in the industry have

braced for potential changes to CHIPS Act grant conditions under

President Donald Trump.

Trump on Monday held a press conference with Taiwan

Semiconductor Manufacturing Co ( TSM ), which announced plans for new

factories and $100 billion of investment in the U.S.

"They're coming here in huge size because they want to be in

the greatest market in the world, and they want to avoid the

tariffs that if they're not here, they'd have to suffer,"

Commerce Secretary Howard Lutnick said of TSMC on Monday.

On Tuesday, Caulfield said he expected the U.S. to land on a

combination of tariffs and government assistance.

"As we get through a little bit of the fluidity of the

situation right now, that's where this thing will land,"

Caulfield said. "We'll find that the combination of the two is

how you'll get the outcome you're looking for."

(Reporting by Stephen Nellis in San Francisco; Editing by

Lincoln Feast.)

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