Get started

Semicondutors

The Chips Act's Biggest Beneficiary may be...Intel!The Biden administration is nearing completion of allocating $39 billion in grants under the CHIPS and Science Act, aimed at revitalizing the U.S. semiconductor industry. However, the real challenges lie ahead. 1.The CHIPS Act, passed two years ago, is a bold attempt to bring advanced chip production back to the U.S., betting on Intel, Micron, TSMC, and Samsung. The goal is to produce 20% of the world's most advanced processors by 2030, up from nearly zero today. 2.Key to this effort is Mike Schmidt, who leads the CHIPS Program Office (CPO) at the U.S. Department of Commerce. His team, composed of experts from Washington, Wall Street, and Silicon Valley, aims to reduce reliance on Asia, particularly Taiwan, as chips are essential for everything from microwaves to missiles. 3.The CHIPS Act outlines specific goals and capacity expectations, as shown in the chart. According to BCG forecasts, by 2032, the U.S. is expected to produce about 14% of the world's wafers, up from the current 10%. Without the Act's support, this figure would drop to 8% by 2032. The immediate priority is to establish at least two major clusters for advanced logic chip manufacturing (the brains of devices). Officials also aim to build large-scale advanced packaging facilities, which are crucial for connecting chips to other hardware. Additionally, they seek to boost the production of traditional chips, as the U.S. is concerned about China's growing capacity in this area. Advanced DRAM memory, essential for AI development, is also a focus. 4.Intel is a major beneficiary of the CHIPS Act, receiving $8.5 billion in direct assistance and $11 billion in support loans from the U.S. Department of Commerce to support its over $100 billion chip investment plan. Intel also stands alone as the sole recipient of a $3.5 billion plan to produce advanced electronics for the military, despite controversy in Washington. 5.Other chip manufacturers face challenges. TSMC, Intel, and Samsung have committed to investing $400 billion in U.S. factories, but most have missed their targets due to various issues. For instance, TSMC has been reluctant to move its production lines and packaging capabilities from Taiwan, as chip packaging is seen as Taiwan's "trump card" in ensuring U.S. protection. 6.The broader challenge remains workforce shortages. McKinsey estimates that the U.S. semiconductor industry will face a shortage of 59,000 to 77,000 engineers in the next five years. Without immigration reform and a cultural shift toward hardware innovation, the U.S. may struggle to maintain its lead even if it builds new factories. For individuals, pursuing a two-year technical degree at a community college could be a smart career move, as over 80 semiconductor-related courses have been introduced or expanded since the CHIPS Act was passed.
NASDAQ:SOXX
by xugina78
SOXL close to a strong supportSOXL tracks the performance of the thirty largest U.S. listed semiconductor companies. The semiconductor space is still hot, but the companies in the leveraged Direxion Daily Semiconductor Bull 3X Shares (SOXL) didn`t performed well against the inflation and raising interest rates recently. I think SOXL is now close to the strong support of $21, pre-pandemic level, from which it can bounce to the $36 resistance. Looking forward to read your opinion about it.
AMEX:SOXLLong
by TopgOptions
1
SOX PHLX Semiconductor Shortage won`t be solved anytime soon !!Secretary of Commerce Gina Raimondo: “The semiconductor situation is going to take a long time to fix” “This is one I feel confident saying it's not going to be fixed in a month or two, or six, or 12 months.” For now PHLX Semiconductor (^SOX) is oversold and we can see in the chart what was the price movement after the last oversold area. I expect to be the same now, since the semiconductor shortage won`t be solved anytime soon. My price target is 3730. Looking forward to read your opinion about it.
NASDAQ:SOXLong
by TopgOptions
$MU vs $AMD*This is not financial advice, so trade at your own risks* *My team digs deep and finds stocks that are expected to perform well based off multiple confluences* *Experienced traders understand the uphill battle in timing the market, so instead my team focuses mainly on risk management* My team has been analyzing $MU for the past few months. After consolidating in the $74-84 range for the past few weeks we finally believe that $MU is ready to take its leap to go past $100. $MU is a semiconductor company much like $AMD. With this being said investors should expect these two to uptrend similarly short-term along with other semiconductor companies. For long-term investors $AMD is the chip tyrant that will most likely dominate its competition, but that doesn't mean that we're not going to show $MU some love in the meantime. We entered $MU this morning at $79.36 and plan to take profit 1-2 months from now at $104. Entry: $79.36 Take profit: $104 Stop loss: $75 If you want to see more, please like and follow us @SimplyShowMeTheMoney
NASDAQ:MULong
by SimplyShowMeTheMoney
2
$AMD is sitting pretty right now*This is not financial advice, so trade at your own risks* *My team digs deep and finds stocks that are expected to perform well based off multiple confluences* *Experienced traders understand the uphill battle in timing the market, so instead my team focuses mainly on risk management* Steadily increasing semiconductor demand due to current shortage will leave $AMD with fat profits during the next few market quarters. After correcting from its all time high of $99.23 $AMD now sits at $81.56. My team has opened a position in $AMD on 6/10/21 at $81.10 per share and have our first take profit at $90. Our stop loss is set at $76 If you want to see more, please like and follow us @SimplyShowMeTheMoney
NASDAQ:AMDLong
by SimplyShowMeTheMoney