Biden Reportedly Plans Billion-dollar Chip Initiative Ahead Of Elections: Eyes On Intel, Taiwan Semiconductor And More
Portfolio Pulse from Nabaparna Bhattacharya
The Biden administration is reportedly planning to announce billions in subsidies for semiconductor companies under the $53 billion Chips Act. The initiative aims to boost U.S. microchip production, countering China's industry. Intel (INTC) and Taiwan Semiconductor Manufacturing Co. (TSM) are expected to be key beneficiaries, with projects in states like Arizona, Ohio, and New Mexico. The Chips Act has faced slow implementation due to permitting, negotiations, and worker shortages. Despite these challenges, the Act has spurred over $200 billion in private sector investments. Other companies to watch include Samsung Electronics (SSNGY), Micron Technology (MU), and Texas Instruments (TXN), along with ETFs like SOXX and SMH.
January 27, 2024 | 10:23 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Intel is expected to benefit from the Biden administration's subsidies for semiconductor companies, which could enhance its projects in key states.
Intel is directly mentioned as a key beneficiary of the Chips Act subsidies, which is likely to have a positive impact on its stock price in the short term due to anticipated government support for its manufacturing projects.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
The VanEck Semiconductor ETF (SMH) may experience positive effects from the Chips Act subsidies, supporting its underlying semiconductor holdings.
SMH, which includes semiconductor companies, is expected to benefit from the overall positive impact of the Chips Act subsidies on the sector.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
The iShares PHLX Semiconductor ETF (SOXX) could see positive movement due to the anticipated subsidies for the semiconductor industry.
SOXX, which tracks semiconductor stocks, is likely to benefit from the positive sentiment and potential growth in the sector due to the Chips Act subsidies.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
Taiwan Semiconductor Manufacturing Co. is set to receive subsidies from the Chips Act, potentially accelerating its U.S. production projects.
TSMC is mentioned as a major recipient of the Chips Act subsidies, which is expected to positively influence its stock price in the short term by supporting its expansion in the U.S. market.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEUTRAL IMPACT
Micron Technology may be impacted by the broader semiconductor industry support from the Chips Act, though not directly mentioned as a subsidy recipient.
Micron Technology is not specified as a direct beneficiary of the Chips Act subsidies, but as a key player in the semiconductor industry, it may experience indirect benefits from the overall sector support.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Texas Instruments could see an indirect impact from the Chips Act subsidies, which aim to strengthen the U.S. semiconductor industry.
Texas Instruments may benefit indirectly from the Chips Act subsidies, as the initiative is expected to have a positive effect on the semiconductor industry as a whole.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50