This article first appeared on GuruFocus.

Intel (INTC, Financials) shares climbed in premarket U.S. trading Friday after reports that the Trump administration is considering new measures to reduce reliance on imported semiconductors by requiring chipmakers to expand domestic production.

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Before the opening bell, Intel rose 2.9%, while GlobalFoundries (GFS) gained more than 5%. The Wall Street Journal reported that the White House is reviewing a policy that would mandate companies produce in the U.S. the same number of chips they import. Those that fail to meet the threshold could face tariffs.

The proposal follows last month's move to impose a 100% tariff on all chip imports, with exemptions for companies maintaining U.S. manufacturing operations. Commerce Secretary Howard Lutnick has held discussions with industry executives about the plan, according to the report.

Shares of European chipmakers fell after the report. ASML fell 0.3%, ASM International fell 1.4%, and Infineon fell 2.7%. Taiwan Semiconductor Manufacturing sank 1.5%, Samsung Electronics down 3.3%, and SK Hynix plummeted 5.6% in Asia.

The plan reflects attempts to bolster domestic semiconductor supply chains, however analysts expressed questions around practicality given greater labor and infrastructure costs in the U.S. As chipmakers think about where to put their money, they will be quite interested in the result of the policy debate.

In October, third-quarter earnings reports will be the next thing that moves the sector.