"We’re not just bringing leading-edge chip technology and (factories) to the United States, we’re also bolstering the suppliers that make leading-edge manufacturing possible,” U.S. Secretary of Commerce Gina Raimondo said in a statement. Congress in 2022 approved the Chips and Science Act to boost domestic semiconductor output with $52.7 billion in research and manufacturing subsidies. According to the Commerce Department, the project's first phase would support the production of liquid filter membranes and Front Opening Unified Pods (FOUPS), specialized containers invented by Entegris to secure semiconductor wafers when transported during the manufacturing process.
At this point, directly betting against semiconductor stocks – especially if they’re named Nvidia (NASDAQ:NVDA) – should first come with a warning. The sector continues to defy gravity, with demand seemingly pointing to a limitless ceiling. Nevertheless, one must figure that even mighty Nvidia will reach a saturation level where the upside returns can no longer justify the downside risks. However, we know that technology continues to march perpetually forward, which puts investors in a quandary.
Entegris (ENTG) and Kulicke and Soffa have been highlighted in this Industry Outlook article.