- GRIT
- Posts
- Big Bet On Chips
Good Morning!
Happy Monday! Let’s have a great week:
👉 TSMC gets money
👉 Fed Governor speaks
👉Another Boeing incident
CHIPS: TSMC Gets Money
The Biden administration recently announced that Taiwan Semiconductor’s Arizona branch is set to receive up to $6.6 billion in funding from the U.S. government as part of the CHIPS and Science Act. This support is aimed at assisting TSMC in its $65 billion effort to build three advanced semiconductor plants in Phoenix, Arizona. TSMC is also in line for about $5 billion in loans under this act. Commerce Secretary Gina Raimondo highlighted the importance of this move for bringing top-tier chip production to the U.S., with an additional $50 million dedicated to training workers in Arizona.
Source: Bloomberg
This development has already resulted in over 25,000 jobs and attracted 14 semiconductor suppliers to the state. The CHIPS Act seeks to strengthen the U.S. semiconductor industry, offering incentives for domestic production while limiting expansions in certain countries for security reasons. TSMC is known for producing a majority of the world's advanced chips, including for clients like Apple and AMD.
🎯 GRIT TAKE: Due to the tensions between…upgrade to VIP now to read the full GRIT Take!
BOWMAN: Not So Fast
Federal Reserve Governor Michelle Bowman recently indicated that interest rates might need to rise to tackle inflation, contrary to what some officials and the market expect. She highlighted the importance of not reducing rates too quickly due to inflation risks.
Source: CNBC
Bowman, known for her strict view on inflation, believes that while rate cuts are eventually on the horizon, the current economic climate still warrants caution due to ongoing inflation concerns. Her remarks come at a time of uncertainty regarding the Fed's future actions. Although there's speculation about rate cuts this year, opinions within the Fed vary on the timing and necessity of these cuts.
BOEING: New Incident
On a flight out of Denver, a Southwest Airlines Boeing 737-800 decided to shed its engine mid-takeoff, giving a wing flap an unexpected tap. The incident happened Sunday, and despite the surprise accessory loss, Southwest Flight 3695 looped back to Denver safely. Passengers were only a tad late (three hours) after a quick plane swap.
Source: NPR
This mishap adds to Southwest's peculiar month that has been filled with drama. Meanwhile, Boeing's dealing with its own series of unfortunate events, from dramatic door seal exits on its 737 Max 9s to a delivery delay drama thanks to quality control escapades. These adventures have left airlines like Southwest and United scribbling new lines in their growth charts.
Headlines You Need To Know: 🎙
Yellen won’t rule out tariffs on China
Brazil Supreme Court goes after Elon Musk, X
Dimon discusses AI
Iger won the battle
Blackstone makes $10 billion real estate deal
Chart of the Day
📊 Chinese Car Exports
Source: STATISTA
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @wallstmemes
Do you have feedback to share? Click HERE.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy, State Disclosure Policy, and Disclaimer Policy
If you have any questions please contact us at info@gritcap.io
Join the conversation