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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.
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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
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📊 Chinese Car Exports
Source: STATISTA
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