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Intel, the world's largest and highest-valued semiconductor chip manufacturer based on revenue, has a majority of its manufacturing in America -- something that benefited it once coronavirus hit global supply chains.
"The lion's share of our capacity is here in the U.S.," Intel CEO Bob Swan told FOX Business' Liz Claman on Friday. "The lion's share of our R&D is here in the U.S."
The Trump administration said Friday it will block tech giant Huawei's use of American software in overseas manufacturing, closing a loophole that the Chinese manufacturer had relied on to circumvent U.S. sanctions.
However, Swan doesn't see that move impacting his company greatly.
"We will continue to try to meet the needs of our global customers while at the same time dealing with emerging changes in regulation in every market that we operate in," Swan said on "The Claman Countdown." "But we're in the process and digesting the news that came out this morning."
The Trump administration has continually pushed for more international semiconductors to move their operations to America. On Friday, Taiwan Semiconductor announced it is working to bring vital suppliers to Arizona, where it's building a plant that will produce computer chips on the “cutting edge of technology.”
The $12 billion factory will employ 1,600 high-tech workers and produce a 5-nanometer chip, smaller and more powerful than the 7-nanometer chips currently considered state of the art. The smaller the chip, the more powerful it is.
The chipmaker has eight key suppliers, and having them in Arizona will allow for “vertical integration” there, which should “facilitate even more activity,” Commerce Secretary Wilbur Ross told FOX Business’ Maria Bartiromo. Intel and ON Semiconductor already operate in the state.
Construction will begin next year, and production at the plant is slated to start in 2024.
The announcement comes as shutdowns caused by the COVID-19 pandemic have exacerbated concerns that the U.S. has become too reliant on production in Asia for key technologies.
Intel was already in talks with the Trump administration to expand its presence in the U.S.
Intel's first-quarter net income was $5.66 billion. Profit came in at $1.31 per share. Earnings, adjusted for one-time gains and costs, came to $1.45 per share. The results topped Wall Street expectations.
The world's largest chipmaker posted revenue of $19.83 billion in the period, which also beat Street forecasts.
For the current quarter ending in July, Intel expects its per-share earnings to be $1.10. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.05.
The company said it expects revenue in the range of $18.5 billion for the fiscal second quarter. Analysts surveyed by Zacks had expected revenue of $17.24 billion.