Intel Stock Falls as Trump Calls for End to CHIPS Act

Intel Stock Falls as Trump Calls for End to CHIPS Act

Intel Stock Falls as Trump Calls for End to CHIPS Act: Intel Corp. stock is facing a decline on Wednesday, and the weakness may be linked to former President Donald Trump’s call to end the CHIPS and Science Act.

In a speech to Congress on Tuesday, Trump sharply criticized the CHIPS Act, calling it “a terrible, terrible thing,” Bloomberg reported. The law, designed to boost U.S. semiconductor manufacturing, provides $39 billion in grants and loans, along with a 25% tax break, to support domestic chip production. In addition, it dedicates $11 billion to research and development in the semiconductor industry.

The primary goal of the CHIPS Act is to reduce reliance on Asian suppliers for key electronic components. However, Trump has argued that the program is wasteful and suggested that tariffs could achieve similar results while generating revenue for the government.

Intel has been a major beneficiary of the CHIPS Act, receiving up to $7.86 billion in funding to support its semiconductor manufacturing projects, according to CNBC. The company is investing billions in these initiatives, but the Ohio-based factory, originally planned as a key part of its expansion, has been delayed until the early 2030s.

Investors appear to be reacting negatively to the possibility of the CHIPS Act being suspended, as it poses a significant threat to Intel’s long-term manufacturing and expansion plans.