The Biden administration is expected to announce billions of dollars in subsidies to Intel, Taiwan Semiconductor Manufacturing and others in the coming weeks, the Wall Street Journal reported Saturday.
The awards would be part of the $53 billion Chips Act to bring back chip manufacturing to the U.S. The legislation was passed in 2022, but the administration has only made two tiny grants so far.
In addition to Intel and Taiwan Semi, the administration could announce awards for Micron Technology, Texas Instruments, GlobalFoundries and South Korea's Samsung Electronics.
Intel has chip projects underway in Arizona, Ohio, New Mexico and Oregon with a total cost of more than $43.5 billion. Taiwan Semiconductor has two chip fabrication plans under construction near Phoenix for some $40 billion. The first plant is due to open in 2025. Taiwan Semi recently pushed back the second fab's start to 2027-2028, and suggested that U.S. government "incentives" will influence how advanced it will be.
Samsung has a $17.3 billion project near Dallas.
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Chip Stock Performance
It's unclear if subsidy announcements would have an impact on share prices. Chips Act grants were going to happen at some point. Also, the announcements would be preliminary, according to the Wall Street Journal. Final agreements would come later, with funds released in stages.
Intel fell 1.8% Monday morning, with Taiwan Semi down 0.8%. Micron, TI and GlobalFoundries edged higher.
Intel stock plunged 11.9% to 43.65 in Friday's market trading, gapping below the 50-day line. The Dow tech giant beat Q4 views late Thursday but guided well below views for Q1.
TSM stock is up 12.75% in 2024, hitting 23-month highs. Shares blasted out of base earlier this month on a bullish Taiwan Semi guidance 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, trading around 52-week highs. GFS stock fell 4.8% on Friday, taking its cue from Intel, to undercut all its key moving averages.
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