Hopper58 schreef op 21 februari 2025 09:51:
The Chips Act may be dead. That’s another big hurdle for semiconductor stocks.
Fears about the future of U.S. Chips Act come after Trump’s latest 25% tariff threats
By
Therese Poletti
Last Updated: Feb. 20, 2025 at 3:48?p.m. ET
First Published: Feb. 20, 2025 at 1:16?p.m. ET
'Moves expected by the Trump administration to gut a key government scientific agency could bring another challenge for semiconductor and chip-equipment companies — and their stocks.
Semiconductor Advisors analyst Robert Maire said that reports Wednesday from Bloomberg and Axios of the new administration’s plans to cut around 500 jobs at the National Institute of Standards and Technology could be the death knell for the U.S. Chips Act.
NIST is a lab within the U.S. Commerce Department, and one of its tasks is to oversee and administer the funds for investments originated under the Biden administration that are meant to bolster the U.S. semiconductor industry. The Chips Act included about $39 billion in subsidies for building semiconductor plants in the U.S., along with tax credits for costly manufacturing equipment.
“NIST people have confirmed that they expect firings soon, likely this week, and it sounds like Chips Act will be the primary target,” Maire said in a note to clients. “If there are no employees left to administer the Chips Act program, it is dead by default, as there is no one left to certify that companies have met their requirements, let alone write the checks.” '
'Two of the biggest U.S. recipients of Chips Act funding so far have been Intel Corp. and Micron Technology Inc., which are both building new fabrication facilities in the U.S. Companies that make the equipment used to manufacture chips, such as Applied Materials Inc. and LAM Research Corp., have also been seen as beneficiaries of more spending by chip customers to equip the new facilities. Applied Materials, however, got rejected when it applied for funding for a new $4 billion research facility.
The reports of expected job cuts at NIST come right after President Donald Trump threatened 25% tariffs on automobiles, pharmaceuticals and semiconductors earlier this week. Tariffs could be announced on April 2, after a complete review of trade policies is expected to conclude April 1.
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We don’t think that the administration has fully thought through all the ramifications, as 100% of AI chips are imported from Taiwan,” Maire said, adding that an increasing number of Intel chips are imported, along with 100% of Advanced Micro Devices Inc. chips. Chips from other customers of Taiwan Semiconductor Manufacturing Co. Ltd. and the vast majority of memory chips are often also imported.'
www.marketwatch.com/story/the-chips-a...