Shares of Intel ( INTC 3.12% ) The company’s stock price increased by 3.1% at the end of Monday’s trading session, as reported by the data. Market analysis provided by S&P Global. .
Although there were no industry-specific updates impacting Intel today, the company’s stock received a lift due to reports that a different American semiconductor firm was awarded substantial government funding. Texas Instruments is a company based in Texas. issued a statement to the media stating that it is set to secure $1.6 billion in additional funding under the CHIPS Act for the establishment of semiconductor facilities in Texas and Utah.
The company also mentioned that it expects to receive tax credits amounting to $6 billion to $8 billion.
The United States remains committed to investing in the production of semiconductor chips within its own borders.
Recently, Intel’s stock has experienced a significant decline as a result of underwhelming business performance and future uncertainties. The company’s stock value has dropped by 57% so far this year, leading investors to search for any positive news that could potentially stimulate a recovery for this semiconductor company.
Today, it was announced that Texas Instruments is set to receive a new investment distribution under the CHIPS and Science Act. This development indicates to investors that the U.S. government remains committed to backing the growth of its national semiconductor industry.
Specifically, the investment in Texas Instruments indicates that the United States is prioritizing the development of its own chip production capacity. The semiconductors produced by Texas Instruments are not as cutting-edge as those manufactured by leading chip fabrication companies. The manufacturing company located in Taiwan is known as Taiwan Semiconductor Manufacturing. , Samsung However, the significant funding received through the CHIPS Act indicates that the nation is adopting a varied strategy for supporting the industry, in addition to existing support from companies like TSMC, Samsung, and Intel.
Could the fantastic business drive a recovery for Intel?
Although numerous companies create their own chips, only a few companies actually handle the majority of semiconductor manufacturing. TSMC is a key player in the contract chip fabrication industry, especially excelling in the production of advanced semiconductors. AI and other sophisticated programs.
Currently, Taiwan is at the forefront of global chip production. However, concerns have been raised by investors and analysts about the possibility of China invading the country or exerting more influence over it.
Intel has received the largest share of the $39 billion allocated under the CHIPS Act to enhance chip manufacturing within the country, with $8.5 billion in funding and loans.
The company is currently undergoing a significant reorganization and plans to reduce its global workforce by 15%. Intel sees the potential for third-party fabrication services to become a key factor in its success, but it will take time for the company to demonstrate this and for the strategy to yield results.
