: Here are the chip companies that should benefit the most from the government’s massive incentives

by | Jan 4, 2023 | Stock Market

The pandemic created enormous challenges for semiconductor companies. Unprecedented demand drove up prices and backlogs for chips and equipment as supply chains faltered. At the same time, concerns grew about dependence on China and Taiwan. As a result, policymakers passed the $53 billion Chips and Science Act. 

With globalization’s golden age potentially in the rearview, we are seeing a rise in nationalistic policies. Some of this due to uncontrollable circumstances, such as Xi Jinping’s microaggressions against Taiwan and Vladimir Putin’s war on Ukraine. Even Taiwan Semiconductor Manufacturing Co.
TSM,
+2.81%
founder Morris Chang is calling globalization all but dead.   The passage of the Chips and Science Act is the beginning of a longer process of building greater resiliency and lower dependence on Taiwan and China. It’s also about protecting domestic technology leadership and dealing with threats to national security. These three items make up the trifecta of critical concerns for passing the law: national security, supply-chain resiliency and technology leadership.  And despite the bill being passed, there is a second wave of activity among semiconductor companies, and that is how the dollars are appropriated. That begs the question of how the U.S. “should” be distributing subsidies to achieve the best outcomes for the U.S. and our global trading partners. How funding should flow I believe that Intel
INTC,
+3.80%,
the largest semiconductor manufacturer in the U.S., should receive the …

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