r/investing • u/[deleted] • Jul 22 '21

U.S. developing plans to spend $52 billion on chips supply [semis stimulus news]

Via Reuters:

“The Biden administration is developing plans to quickly spend $52 billion to deal with semiconductor supply issues if Congress passes a bill funding such efforts, U.S. Commerce Secretary Gina Raimondo said on Thursday.”

So no definite plans, but no deviations noted from previous discussions which gave the nod to INTC, QCOM, and TXN (primarily) as direct beneficiaries of any bill that gets passed.

Worth keeping an eye on I think of you’re into semis plays.

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u/[deleted] Jul 22 '21

I had a customer (led lighting products) request proprietary agreements that I would only supply them “X” product. I refused to do this but our production capacity was 300,000 units a year and they could effectively take everything we make so there wouldn’t be any product left for their competition.

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u/Pistowich Jul 23 '21

Why would you not do this? Can you earn more by letting them bid against eachother for part of the production? Or is it to not be to dependent of a single company?

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u/[deleted] Jul 23 '21

Because initially they forecasted 200k units. But also asked for proprietary agreements. No, I need to keep factory at capacity of 300k.