The demand for federal subsidies to boost advanced semiconductor production in the U.S. has significantly exceeded available funds, with companies requesting over $70 billion, double the $39 billion allocated.
Leading chipmakers, including Nvidia Corp and Advanced Micro Devices, Inc (NASDAQ:AMD), have earned breakthroughs in AI technology chips courtesy of the U.S. and global Big Tech companies splurging on expanding their AI moat. Analysts tout the chip designers as the key AI beneficiaries.
Commerce Secretary Gina Raimondo highlighted this surge in interest, emphasizing the government’s role in revitalizing the nation’s semiconductor manufacturing to mitigate reliance on foreign chip production.
Currently, the U.S. only produces 12% of global chips, a figure the subsidies aim to increase by incentivizing domestic production to strengthen the U.S. supply chain, the New York Times reports.
The urgency for expanding domestic chip production is further amplified by the rise of artificial intelligence, deemed a pivotal technology of the era by Raimondo.
Citi analyst Christopher Danely AMD and Nvidia are amongst his top AI picks. He expects broader semiconductor revenue growth of at least …