Chip stocks surged after President Trump announced that semiconductor companies investing in U.S. chip manufacturing will be exempt from tariffs, those that don’t face 100% tariffs. Taiwan Semiconductor Manufacturing (TSM) rose 4.9% after committing to build new chip factories in Arizona.

U.S. chipmakers like GlobalFoundries (GFS) and Texas Instruments (TXN) benefited from Trump’s tariff announcement, with exemptions for those investing in U.S. chip manufacturing. Trump stated a 100% tariff on all chips and semiconductors entering the U.S., with exceptions for companies building or in the process of building in the U.S.

The Philadelphia semiconductor index (SOX) rose 1.5%, including top stocks like AMD, Broadcom, and Nvidia. The iShares Semiconductor ETF (SOXX) advanced 1.7%. Morgan Stanley analyst Joseph Moore noted that Trump’s tariff comments offer relief to semiconductor firms and could boost U.S. chip manufacturing equipment makers.

Intel stock fell 3.1% as President Trump called for CEO Lip-Bu Tan’s resignation due to alleged Chinese company ties. Tan, named Intel CEO in March, faces scrutiny for previous investments. Analysts speculate on potential takeovers by TSMC or Broadcom. Bernstein analyst Stacy Rasgon defends Tan’s industry reputation.

Read more at Investor’s Business Daily: Chip Stocks Rocked By Trump Tariff, Intel Comments