Shares of Intel (NASDAQ: INTC) gained in Monday’s trading. The company’s share price closed out the day up 3.1%, according to data from S&P Global Market Intelligence.
While there wasn’t any business-specific developments affecting Intel today, the stock did get a boost from news that another U.S. semiconductor company was receiving some significant government subsidies. Texas Instruments published a press release announcing that it would receive $1.6 billion in new funding through the CHIPS Act to develop semiconductor plants in Texas and Utah.
The company also said that it anticipates receiving between $6 billion and $8 billion in tax credits.
The U.S. continues to bet on domestic chip production
Intel stock has been hit hard lately due to poor business performance and uncertainty on the horizon. The company’s share price is down 57% year to date, and investors have been looking for any positive developments that could help trigger a rebound for the semiconductor stock.
With news today that Texas Instruments would be receiving a new investment distribution as part of the CHIPS and Science Act, investors were seeing signs that the U.S. government will continue to support the development of its domestic chip industry.
In particular, the funding for Texas Instruments signals that the U.S. is still focused on building up domestic chip fabrication capabilities. The kinds of semiconductors that Texas Instruments manufactures are much less advanced than the types made by fab leaders including Taiwan Semiconductor Manufacturing, Samsung, and Intel, but the sizable new funding through the CHIPS Act shows that the country is taking a diversified approach to industry funding.
Can the fab business power a rebound for Intel?
While many companies design their own chips, most semiconductor manufacturing is done by just a handful of the companies. TSMC in particular dominates the contract chip fabrication market, and its leadership is even more pronounced when it comes to advanced semiconductors used for artificial intelligence and other advanced applications.
As a result, Taiwan is…
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