How Sec. Lutnick's push for US chip production impacts chipmakers

00:00 Speaker A

Bloomberg retired with the study uh citing its sources Patrick talking astir however Commerce Secretary Howard Luttnik signaling helium could withhold promised Chips Act grants arsenic helium pushes companies to grow their US projects. So it sounds similar Patrick, Luttnik fundamentally saying, listen, I privation you to bash what TSMC conscionable did, which is announced they're going to put different 100 billion. I'm conscionable funny Patrick, what what bash you marque of that headline?

01:43 Patrick

Well, the devil's successful the details, uh I similar to say. Um, archetypal off, let's get immoderate facts retired there. A Chips Act is not conscionable a a giveaway. They're precise acceptable milestones of what these companies person to bash earlier they get the money. You mightiness beryllium thinking, well, hold a second, Chips Act was formed, they started penning checks. Only precise tiny parts of that full Chips Act backing has has been spent. Uh, I don't deliberation this volition interaction companies similar Intel and TSMC, and possibly not adjacent even adjacent um Micron, but we'll spot what it could mean to Samsung. Intel already made its $100 cardinal dollar commitment. They made it earlier. It didn't bash didn't bash it connected signifier with uh President Trump, but they did this uh already. Samsung made a precise important committedness successful Austin, Texas, arsenic did Micron successful in New York. I I consciousness similar this is the politization of of the Chips Act arsenic it's looked astatine arsenic a tax. History shows that each benignant of backing oregon helping that's gone into semiconductors, there's astir a 4 to 1 oregon 5 to 1 summation successful taxation revenues that travel retired of that due to the fact that each of these companies person to travel successful and enactment these uh enactment these foundries. Not conscionable to physique it, but uh implicit 10 years to support it, to bring the vigor in, to bring the supplies, the gases, uh to marque to marque this happen.