Seems silicon chips rule everything around you ‘n’ me that they’re becoming a national security issue for the US. No, not from the threat of robot unicorns or gun-toting robo-dogs (yet!). 🔫🐶 But a good chunk of the US economy, not to mention all of their major defence systems, relies on the availability of semiconductors. Yet in the 28 years since hip-hop icons Wu-Tang Clan released C.R.E.A.M., America has gone from producing 37% of the world’s semiconductor volumes to just 12%.
The US is so worried they say they could even be in for a ‘deep and immediate recession’ if the country were to be cut off from chip manufacturing in Taiwan. 😲 So their lawmakers are chipping away at new bills, offering US$52 billion in subsidies and tax incentives to boost manufacturing in the US. With so many dollars on the table, the bills could be a much-needed boost for companies that design and manufacture their own chips. Companies like Intel (INTC), Texas Instruments (TXN) and Micron Technology (MU).
Someone else eager to get their hands on some dollar, dollar bills y’all is Paul Pelosi, the husband of US House Speaker Nancy Pelosi. 💸 Paul Pelosi bought millions of dollars’ worth of shares in chip designer Nvidia (NVDA) ahead of a vote on the chips bill. Talk about drama! Did Nancy Pelosi slip her husband some extra information…? Nancy says nuh-uh, nope, no way! Regardless, as a chip designer that outsources production, the bills may do little to help Nvidia or fellow designer, Advanced Micro Devices (AMD). Still, the extra chip funding looks like mere crumbs compared to the potential US$192 billion Samsung could look to invest in Texas in the years to come, because well… everything’s bigger in Texas. 🤠