biden's chip act shakes up global tech giants
Washington D.C., Tuesday, 14 January 2025.
The Biden administration’s finalization of the Chip Act has stirred significant reactions from major players in the tech industry. Providing $53 million to HP for chip manufacturing, this move has prompted ASML and TSMC to reevaluate their market strategies. The changing U.S. export policies have influenced their stock market outlook and positioning. These developments are part of a broader effort to strengthen domestic semiconductor capabilities. The funding aims to support next-generation technology and local manufacturing ecosystems. This shift comes as the administration rushes to finalize agreements before the transition of power. The strategic decisions by ASML and TSMC highlight the global impact of U.S. policies on technology supply chains. The ripple effects of these changes are expected to influence the industry landscape significantly.
HP funding signals domestic manufacturing push
HP has secured $53 million in direct funding through the CHIPS Act to enhance domestic semiconductor manufacturing capabilities [1][5]. The funding will support the expansion and modernization of existing facilities in Corvallis, Oregon, focusing on lab-to-fab ecosystem development [1]. This investment specifically targets the manufacturing of silicon components for life science laboratory equipment, crucial for drug discovery and cell research [1].
Accelerated agreement finalization ahead of transition
The Commerce Department has established preliminary agreements with over 20 companies [1][5]. Final agreements have been reached with several major players, including TSMC, Intel, GlobalFoundries, Entegris, and Micron Technology [1]. Commerce Secretary Gina Raimondo emphasized that these investments will ensure America’s competitive edge in semiconductor capabilities [1].
Export controls reshape market dynamics
The Biden administration has implemented new restrictions on AI chips and technology exports [6]. These controls, announced on January 13, 2025, specifically target preventing advanced chip access by countries including China and Russia [6]. This regulatory shift has prompted major industry players to reassess their market strategies [GPT].