Intel (INTC, Financial) could face meaningful revenue pressure in China following Beijing's new tariff measures targeting U.S.-made goods, according to a note from Wells Fargo. The firm highlighted that China accounted for 29% of Intel's revenue in 2024, making the company particularly exposed to the policy shift.

Beijing recently imposed tariffs of up to 125% on U.S. products in response to American trade restrictions. But Chinese regulators are treating semiconductors differently depending on where they're manufactured. Companies like Qualcomm (QCOM, Financial) and AMD (AMD, Financial), which outsource chip production to Taiwan Semiconductor Manufacturing Co. (TSMC), are being exempted as those chips are considered Taiwan-origin, not U.S.-made.

In contrast, chips produced in U.S.-based fabs—like those operated by Intel, Texas Instruments (TXN, Financial), Analog Devices (ADI, Financial), and ON Semiconductor (ON, Financial)—are being classified as American in origin, making them subject to tariffs of 84% or more, according to the China Semiconductor Industry Association.

Wells Fargo's analysts, led by Aaron Rakers, warned this could accelerate Intel's market share loss in China. Intel's manufacturing footprint includes fabs in Arizona, New Mexico, Oregon, Ireland, and Israel. The company is also building a major production facility in Ohio.

Wells Fargo maintains an Equal Weight rating on Intel with a $25 price target.