Why Are Chip Stocks in Focus Today?
Source: Shutterstock Today, a number of chip stocks are moving slightly in early trading. This is likely because the U.S. Department of Commerce just disclosed information about how $50 billion allocated by Congress to the semiconductor sector via the CHIPS Act will be spent. Specifically, about $28 billion of the funds will be used to incentivize and subsidize chip manufacturing in the United States. The department will spend the funds several ways, including through “grants or cooperative agreements,” subsidized loans and loan guarantees. Further, the department will allocate another $11 billion to RD. Qualcomm (NASDAQ: QCOM ) and Micron (NASDAQ: MU ) are just two of the prominent chips stocks moving this morning. As of this writing, both QCOM and MU are down about 1%. However, they were trending in the green earlier today. Chip Stocks: Criticism of the CHIPS Act Chip stocks maybe moving today, but not everyone is happy about the CHIPS Act. For example, the China Institutes of Contemporary International Relations (CICIR) alleges that the legislation will prevent American and Chinese academics from collaborating .
Why Are Chip Stocks in Focus Today?
Source: Shutterstock Today, a number of chip stocks are moving slightly in early trading. This is likely because the U.S. Department of Commerce just disclosed information about how $50 billion allocated by Congress to the semiconductor sector via the CHIPS Act will be spent. Specifically, about $28 billion of the funds will be used to incentivize and subsidize chip manufacturing in the United States. The department will spend the funds several ways, including through “grants or cooperative agreements,” subsidized loans and loan guarantees. Further, the department will allocate another $11 billion to RD. Qualcomm (NASDAQ: QCOM ) and Micron (NASDAQ: MU ) are just two of the prominent chips stocks moving this morning. As of this writing, both QCOM and MU are down about 1%. However, they were trending in the green earlier today. Chip Stocks: Criticism of the CHIPS Act Chip stocks maybe moving today, but not everyone is happy about the CHIPS Act. For example, the China Institutes of Contemporary International Relations (CICIR) alleges that the legislation will prevent American and Chinese academics from collaborating .