Topic: How To Invest

What is Pat’s commentary for the week of August 30, 2022

Article Excerpt

The U.S. Congress recently passed the $52 billion CHIPS and Science Act. Tax credits and subsidies under the legislation should spur computer chip manufacturers to build new plants in the U.S., which currently produces just 12% of the world’s supply. Increasing domestic chip production will also cut U.S. reliance on imports from China, and from Taiwan. China sees Taiwan, an independent island nation off China’s coast, as a renegade Chinese province that one day will come back under Chinese rule. This puts Taiwan at an eventual risk of invasion or annexation by China. Regardless of political/military developments, the extra capacity from the CHIPS and Science Act will help U.S. chipmakers keep up with rising demand as more electronic devices connect to the “Internet of Things.” It’s likely that more than 64 billion non-computer devices, such as cars and household appliances, will link to the Internet by 2026. Texas Instruments offers investors a great way to profit from this trend. That’s mainly because the…