JPM says U.S. chip funding could help meet half of industry capex

MACOM Technology Solutions Holdings

21/06/2021 10:49

** J.P.Morgan says a sweeping package of U.S. legislation
intended to strengthen technology and research will
significantly improve free cash flow, competitiveness, and
manufacturing diversification of some American chipmakers
    ** Brokerage estimates U.S. semiconductor manufacturing
subsidies could fund 50%-55% of total capex plans of domestic
companies for CY22 and CY23 combined
    ** On June 8, the Senate approved the U.S. Innovation and
Competition Act (USICA) aimed at boosting the country's ability
to compete with Chinese technology  urn:newsml:reuters.com:*:nL2N2NQ302
    ** JPM says Intel  INTC.O , Micron  MU.O , Texas Instruments
 TXN.O , Analog Devices  ADI.O , ON Semiconductor  ON.O ,
Microchip Technology  MCHP.O , MACOM  MTSI.O , and Qorvo
 QRVO.O  are some of the beneficiaries of the USICA
    ** Incentives from the legislation will also benefit
semiconductor equipment cos due to the incremental equipment
purchases - brokerage

 (Reporting by Aniruddha Ghosh in Bengaluru)
 ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))