Intel gains as VP Vance says AI chips will be made in US
Feb. 11, 2025 11:37 AM ET
By: Chris Ciaccia, SA News Editor
Intel (NASDAQ: INTC) shares rose 9% on Tuesday as Vice President J.D. Vance said the most advanced artificial intelligence chips will be made in the U.S.
"The Trump administration believes AI will have countless revolutionary applications in economic innovation, job creation, national security, healthcare, free expression and beyond," Vice President Vance said at the AI Action Summit in Paris.
"To safeguard America's advantage, the Trump administration will ensure that the most powerful AI systems are built in the U.S. with American designed and manufactured chips," Vance added.
Taiwan Semiconductor ( TSM) shares hugged the flat line in late morning trading.
Vance also noted that excessive regulation could wind up negatively impacting the technology, just as it's about to provide larger benefits to society.
Intel did not immediately respond to a request for comment from Seeking Alpha.
The Santa Clara, Calif.-based chip giant has struggled over the years to turn itself around in an effort to compete with Taiwan Semiconductor and other global foundries, as it looks to cash in on the boom for making processors for other companies.
In its most recent quarter, Intel Foundry generated $4.5B in revenue, largely from Intel's own design arm. The company announced in September that it would manufacture some chips for Amazon ( AMZN) Web Services.
The majority of AI chips are made by Taiwan Semiconductor and to a lesser extent, Samsung ( OTCPK:SSNLF). Taiwan Semiconductor has a fab in Arizona and has spoken to Nvidia ( NVDA) about making its Blackwell line of GPUs at the Arizona plant.
Apple ( AAPL) and AMD ( AMD) are currently customers at the Arizona facility.
The Arizona plant reportedly does not have chip on wafer on substrate, or CoWoS, capacity, required for the Blackwell line of GPUs. Currently, all of Taiwan Semiconductor's CoWoS capacity is in Taiwan. |
