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🚀 News in the chip world! 🚀

On Monday , theU.S. governmentannounced that it will contribute $1.5 billion to GlobalFoundries $GFS under the Chip Act, boosting domestic manufacturing. Intel $INTC also finds itself in the game with possible subsidies in excess of $10 billion! 💰

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GlobalFoundries will use the funding to expand its manufacturing plant in Malta and New York. 🏭 Total investment GFS will reach $12 billion over 10 years, supported by 575 million $575 million from the state New York and others $45 million in aid. 💸

This is the first major award under the law CHIPS and Science Act of the 2022which has huge $75 billion for loans and guarantees, along with USD 39 billion for grants. 🌐

Meanwhile , theBiden administration is negotiating another $10 billion in subsidies for Intel under the chip law. Intel is investing $43.5 billion to expand chip production in Ohio, Arizona and New Mexico.Intel shares jumped by 1,45 % on the news, even though they saw a 202413,4% decline.



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Taiwan Semiconductor $TSM-3.5% and Micron Technology $MU-4.6% will also get some of this massive boost. ⚙️🖥️

I find Intel stock quite interesting, having rallied more than 70% from its lows. What do you think?

Do you own any chipmakers, and what companies in the industry do you like? 🚀📈

I'm quite curious how they'll manage to pull off that TSM lead. I've been reading some analysis on the new machines from ASML and it looks like they're more expensive to produce than the ones TSM is currently using and they can't manage to produce everything they have planned for 2030. Even if Intel delivers what they've been promising for a few years now, it's quite possible they'll make less profit on it than TSM. Factoring in the cost of human labor in Taiwan, they're not going to have an easy time getting to their original margins.

I've sold Intel and Micron and only hold TSM with ASML in semis anymore.