GlobalFoundries (NASDAQ:GFS) CEO Thomas Caulfield stated that U.S. tariffs on foreign-made chips could drive demand for domestically produced semiconductors. Speaking at a Morgan Stanley investor conference, Caulfield emphasized that while the $52.7 billion CHIPS and Science Act and investment tax credits have strengthened U.S. chip-making capacity, tariffs could further incentivize companies to source chips from U.S. manufacturers.
"I don’t think one or the other is enough," Caulfield said. "You need the CHIPS Act and investment tax credits to build capacity, and tariffs to create demand dynamics that bring manufacturing home."
His remarks follow President Donald Trump’s recent press conference with Taiwan Semiconductor Manufacturing Co. (TSMC), where the company announced plans for new U.S. factories and a $100 billion investment. Commerce Secretary Howard Lutnick stated that TSMC’s expansion aims to tap into the U.S. market while avoiding potential tariffs.
Caulfield expects a mix of tariffs and government incentives to shape the industry. "As we navigate the current landscape, we’ll find that a combination of both is key to achieving the desired outcome," he added.
The semiconductor sector is closely watching potential policy shifts that could impact CHIPS Act grants and broader industry dynamics.