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EQUITIES: Positive Signs For US Semiconductors

EQUITIES
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  • Biden has signed legislation exempting certain US semiconductor manufacturing facilities from federal environmental reviews, especially those receiving subsidies under the $52.7b CHIPS Act with the law aiming to prevent delays from additional reviews required by the National Environmental Policy Act.
  • The US Commerce Department has allocated over $35b for 26 projects, including major grants to companies like Samsung, Intel, and Micron Technology, to enhance domestic chip production. The legislation is seen as crucial for boosting U.S. semiconductor manufacturing and reducing reliance on China, but critics warn of potential environmental risks, citing past pollution incidents in California as per RTRS.
  • Further, comments from Nvidia CEO Jensen Huang where he stated demand for the company's upcoming Blackwell “Superchip” is "insane." with tech firms like Microsoft, OpenAI, Meta, and other AI-focused companies are eagerly seeking the chip. Blackwell-based products are set to be shipped to cloud services at Oracle, Amazon, Microsoft, and Google later this year, as per CNBC.
  • Semiconductor stocks have underperformed the market since the Yen carry trade started to be unwound back in July with the Philadelphia SE Semiconductor Index underperforming the S&P 500 by 12.40% from July 1st. However, with the yen falling 4.75% from recent Sept highs and dovish comments from BoJ over the past week traders could be tempted back into the yen carry trade which could support semiconductor names again.
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  • Biden has signed legislation exempting certain US semiconductor manufacturing facilities from federal environmental reviews, especially those receiving subsidies under the $52.7b CHIPS Act with the law aiming to prevent delays from additional reviews required by the National Environmental Policy Act.
  • The US Commerce Department has allocated over $35b for 26 projects, including major grants to companies like Samsung, Intel, and Micron Technology, to enhance domestic chip production. The legislation is seen as crucial for boosting U.S. semiconductor manufacturing and reducing reliance on China, but critics warn of potential environmental risks, citing past pollution incidents in California as per RTRS.
  • Further, comments from Nvidia CEO Jensen Huang where he stated demand for the company's upcoming Blackwell “Superchip” is "insane." with tech firms like Microsoft, OpenAI, Meta, and other AI-focused companies are eagerly seeking the chip. Blackwell-based products are set to be shipped to cloud services at Oracle, Amazon, Microsoft, and Google later this year, as per CNBC.
  • Semiconductor stocks have underperformed the market since the Yen carry trade started to be unwound back in July with the Philadelphia SE Semiconductor Index underperforming the S&P 500 by 12.40% from July 1st. However, with the yen falling 4.75% from recent Sept highs and dovish comments from BoJ over the past week traders could be tempted back into the yen carry trade which could support semiconductor names again.