Intel Stock has got an unexpected lift from JD Vance

Intel (Intc) stock increased almost 3% in early trade on Wednesday and extended gains from the previous day when Vice President JD Vancce came up with Bullish comments about the production of domestic chip.

“To protect America’s benefit, the Trump administration will ensure that the most powerful AI systems are built in the United States with US designed and manufactured chips,” Vance said at an address at the AI ​​summit in Paris on Tuesday.

The Intel share jumped 6% after the comments. Although Intel has a heap of pile of internal problems that have put its dominance in chip -making, the company is one of the United States’ highest hopes for domestic AI chipping production. Intel is the only major US leading foundry for computer chief-what means it manufactures chips for both itself and other companies.

The overwhelming majority of the world’s most advanced chips for AI is made in Taiwan by TSMC (TSM). Even Intel is outsourced the production of its most advanced AI chips to his rival. While Koreas Samsung (005930.KS) and TSMC have Extended operations in the US thanks to financial incentives from the US CHIPS ACTMost of their production capacity is in their home countries.

It’s unclear how Trump would “secure” AI systems in the United States use US-made chips, as Vance said. Trump on his campaign track -based chips law, a set of financial incentives for chip companies aimed at strengthening domestic production passed under former President Joe Biden, but author under Trump’s first administration. Trump suggested A performance on the “Joe Rogan experience” In October, he would put tariffs on chip import and believe it would force companies to move to the United States.

“(Y) ou put a large customs duty on the chips coming in. I say, ‘You don’t have to pay customs, all you have to do is build your plant in the US,'” he said.

Meanwhile, Intel has fallen far behind TSMC in the production, and current employees at Intel’s foundry told Yahoo Finance in December that its latest manufacturing process for AI chips has “many problems.”

Intel’s long -term commitment to foundry has also recently been left in doubt. The company began its massive push towards opening its production company to external customers under CEO Pat Gelsinger, exposed by the board in December when investors became impatient with the money-loss approach. Intel is looking for a new CEO. In the last week, Intel’s AI manager left the company to take on the role of CEO of Nokia.

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