Finance

Biden expected to provide subsidies to Intel, TSMC and other companies


Biden administration expected to announce billions in subsidies Intel (International Trade Centre), British Semiconductor (TSM) and more in the coming weeks. The Wall Street Journal reported Saturday.




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The grants will be part of the $53 billion Chip Act, which aims to bring chip manufacturing back to the United States. The bill was passed in 2022, but so far the government has provided only two small grants.

In addition to Intel and TSMC, the government may also announce incentives Micron Technology (mu.), Texas Instruments (TxN), GlobalFoundries (government financial secretary) and South Korea’s Samsung Electronics.

Intel has ongoing chip projects in Arizona, Ohio, New Mexico and Oregon, with a total cost of more than $43.5 billion. TSMC has two chip manufacturing plans near Phoenix, costing about $40 billion, with the first factory set to open in 2025. TSMC recently delayed the start-up of its second fab to 2027-2028, saying the U.S. government’s “incentives” would affect its progress.

Samsung has a $17.3 billion project near Dallas.


Forget about the Seven and focus on the Five.


chip stocks

It’s unclear whether the subsidy announcement will have an impact on share prices. Chip bill appropriations will happen at some point.Additionally, the announcement will reportedly be preliminary wall street journalA final agreement will be reached later and the funds will be released in phases.

Intel, TSMC and Micron edged higher on Monday morning, while Texas Instruments and GlobalFoundries were inactive.

In market trading on Friday, Intel’s stock price plummeted 11.9% to $43.65, gapping above the 50-day moving average. The Dow tech giant beat fourth-quarter estimates late Thursday, but guided well below first-quarter expectations.

TSM shares rose 12.75% in 2024, reaching a 23-month high. Earlier this month, shares surged on Taiwan Semiconductor’s optimistic outlook for 2024.

TXN stock fell 5.5% last week, back below its 200-day line, after reporting weak earnings and guidance. MU stock edged up 0.5% last week and is trading near its 52-week high. GFS stock fell 4.8% on Friday, taking a cue from Intel, to trade below all of its key moving averages.

Please follow Ed Carson’s thread: @edcarson1971 andX/Twitter @IBD_ECarson Get stock market updates and more.

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