Federal Aid Recipients Face Limits on Chip Production Expansion in China: Report
Portfolio Pulse from Anusuya Lahiri
The Biden administration has set guidelines restricting the growth of semiconductor companies in China that receive federal funds for establishing facilities in the U.S. The Chips Program Office will restrict companies from significantly increasing their production or expanding their manufacturing footprint in China. The growth limits are set at 5% for advanced chips and 10% for older technologies. Companies like Intel Corp, Taiwan Semiconductor Manufacturing Co, and Samsung Electronics Co will likely receive federal incentives for new U.S.-based facilities.
September 22, 2023 | 12:43 pm
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NEUTRAL IMPACT
Qualcomm Inc may be affected by the new regulations and discussions on China policies.
While Qualcomm is not directly mentioned as a recipient of the federal incentives, it is involved in discussions on China policies and could be affected by the new regulations.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Intel Corp is likely to receive federal incentives for establishing new facilities in the U.S.
The new regulations restrict growth in China, incentivizing companies like Intel to establish facilities in the U.S. This could potentially boost Intel's production capabilities and competitiveness.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Samsung Electronics Co is likely to receive federal incentives for establishing new facilities in the U.S.
The new regulations restrict growth in China, incentivizing companies like Samsung to establish facilities in the U.S. This could potentially boost Samsung's production capabilities and competitiveness.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Taiwan Semiconductor Manufacturing Co is likely to receive federal incentives for establishing new facilities in the U.S.
The new regulations restrict growth in China, incentivizing companies like TSMC to establish facilities in the U.S. This could potentially boost TSMC's production capabilities and competitiveness.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80