Following U.S. President Donald Trump’s hints at repealing the semiconductor law during his recent congressional address, Intel Corporation’s stock dropped 2.44% to $20.81 on Wednesday’s New York Stock Exchange. The stock plummeted as much as 5% during trading hours.
The decline came after Trump’s speech to Congress, where he suggested scrapping the semiconductor law. He argued that subsidies earmarked for chip companies should instead be used to reduce the national debt.
The semiconductor law, a Biden administration initiative, was designed to bolster the chip industry by offering subsidies to companies expanding their manufacturing facilities. Intel Corporation stood to gain the most from this legislation.
However, Trump’s proposal to repeal the law poses a significant threat to Intel. The company has heavily relied on government support, and if the law is repealed, it could face severe setbacks in its foundry operations.
While other chip stocks rallied despite Trump’s threats, Intel remained the lone decliner, underscoring its vulnerability in the current climate.