Today’s News
The Biden administration has pledged up to USD 450 million in grants to South Korean semiconductor company SK Hynix for a new facility in Indiana, U.S.
Image Source: Reuters
This commitment marks a significant step in enhancing the U.S. semiconductor manufacturing capacity, as SK Hynix joins other industry leaders like Intel, Taiwan Semiconductor Manufacturing Company, Samsung, and Micron in establishing operations stateside with federal support.
Commerce Secretary Gina M. Raimondo highlighted the importance of this investment, stating, “These are the only companies in the world capable of producing leading-edge chips at scale.”
She further emphasized the strategic value of the investment, noting it ensures “the most secure and diverse supply chain in the world for the advanced semiconductors that power artificial intelligence.”
Image Source: Nikkei Asia
This grant is part of the broader CHIPS Act initiative, which has allocated over USD 30 billion towards revitalizing domestic chip production and reducing dependency on foreign chip manufacturing.
The CHIPS Act aims to triple U.S. chip manufacturing capacity by 2032, increasing the nation’s global manufacturing share to 14%. The initiative has mobilized more than USD 300 billion in private investment and is expected to create over 100,000 jobs.
While the funds from the CHIPS Act have yet to be distributed, they are scheduled to be released before the year’s end.
This comes amidst concerns about the sector’s sustainability, highlighted by Intel’s recent announcement of significant job cuts, though the company remains committed to expanding its U.S. manufacturing facilities.
Other News
U.K. Banks Stable in Crisis Without Bailouts
The Bank of England reports that major U.K. banks like HSBC and Barclays can handle a crisis without taxpayer funds. This assessment confirms that shareholders would bear any potential failure costs.
Monte dei Paschi in Talks to Sell French Unit
Italian bank Monte dei Paschi di Siena is negotiating the sale of its French subsidiary, MP Banque. The bank has recorded a 29.3 million euro (USD 31.9 million) charge in anticipation of the sale.
Stocks Rebound from Losses After Global Selloff
U.S. stocks recovered some losses on Tuesday following a global market selloff, with the Dow, S&P 500, and Nasdaq all posting gains. Japan’s Nikkei 225 also surged 10% following a sharp decline.
Risk Disclosure:
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
Disclaimer:
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
