financetom
Business
financetom
/
Business
/
GlobalFoundries chief says tariffs could benefit US chipmakers
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
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.)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Exclusive-Canada to extend mineral exploration tax credit for two more years, minister says
Exclusive-Canada to extend mineral exploration tax credit for two more years, minister says
Mar 3, 2025
-Canada will extend a tax credit on mineral exploration for two additional years as part of the government's move to support investment in exploration projects, energy, and natural resources, Natural Resources Minister Jonathan Wilkinson said on Sunday. The mineral exploration tax credit is a capital market tool that offers investors a 15% tax credit to invest in flow-through shares of...
Update: Orla Mining Up 2% as It Completes the Acquisition of the Musselwhite Gold Mine in Ontario
Update: Orla Mining Up 2% as It Completes the Acquisition of the Musselwhite Gold Mine in Ontario
Mar 3, 2025
11:28 AM EST, 03/03/2025 (MT Newswires) -- (Updates shares.) Orla Mining ( ORLA ) said Monday it completed its acquisition of the Musselwhite gold mine in Ontario from Newmont ( NEM ) . Under the terms, the upfront cash consideration of US$810 million consists of debt, gold prepayment, new convertible notes and cash on hand. The company will also pay...
Palantir Technologies to Benefit From Streamlined US Government Spending, Wedbush Says
Palantir Technologies to Benefit From Streamlined US Government Spending, Wedbush Says
Mar 3, 2025
11:29 AM EST, 03/03/2025 (MT Newswires) -- Palantir Technologies ( PLTR ) is poised to benefit from a more streamlined government spending under President Donald Trump given its unique software value proposition, Wedbush Securities said in a Monday note. Wedbush said there were concerns over the impact of Trump's new five-year plan on Palantir ( PLTR ), given the company's...
Tesla Reinstated as Top Pick in US Autos, Morgan Stanley Says
Tesla Reinstated as Top Pick in US Autos, Morgan Stanley Says
Mar 3, 2025
11:28 AM EST, 03/03/2025 (MT Newswires) -- Tesla (TSLA) was reinstated as a top pick in US autos by Morgan Stanley, with shares down 30% year-to-date due to a buyer's strike along with delivery declines creating an attractive entry point, Morgan Stanley said in a note emailed Monday. The company is evolving from an automotive pure play into a diversified...
Copyright 2023-2026 - www.financetom.com All Rights Reserved