Topic: How To Invest

What is Pat’s commentary for the week of November 31, 2024

Article Excerpt

The shortages of computer semiconductors during the COVID-19 pandemic slowed the production of a wide variety of products, from computers to cars. It also highlighted the importance of those computer chips to the modern global economy. The shortage, in fact, prompted the U.S. Congress to pass the CHIPS and Science Act in 2022, which aims to increase domestic chip production with grants and subsidies. That will help cut the U.S.’s reliance on importing chips from Taiwan, which is a leading supplier of chips. In fact, mainland China considers Taiwan a breakaway province and could someday invade the island. One of the beneficiaries of the new legislation is Texas Instruments, which is using the government support to expand and modernize its U.S. operations. The high cost of these new plants, however, prompted activist investment firm Elliott Investment Management to pressure Texas Instruments to slow its construction plans. The company later agreed to a modified strategy that will let it better match chip production with…