Here are the chip companies that should benefit the most from the government's massive incentives

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Here are the chip companies that should benefit the most from the government's massive incentives
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The Chips and Science Act aims to build greater resiliency and lower dependence on China.

Unprecedented demand drove up prices and backlogs for chips and equipment as supply chains faltered. At the same time, concerns grew about dependence on China and Taiwan. As a result, policymakers passed the $53 billion Chips and Science Act.Unprecedented demand drove up prices and backlogs for chips and equipment as supply chains faltered. At the same time, concerns grew about dependence on China and Taiwan. As a result, policymakers passed the $53 billion Chips and Science Act.

And despite the bill being passed, there is a second wave of activity among semiconductor companies, and that is how the dollars are appropriated. That begs the question of how the U.S. “should” be distributing subsidies to achieve the best outcomes for the U.S. and our global trading partners. The next biggest share of the Chips Act should go to Micron Technology MU , GlobalFoundries GFS and IBM IBM , in that order.

With customers including Samsung Semi and Intel, IBM plays an interesting role in semiconductor manufacturing, and research and development in the U.S., which isn’t talked about often. The company’s New York-based research centers continue to put out critical ideas that drive semiconductor manufacturing, which will be implemented in future process innovations, such as its 2 nm wafers.

AMD AMD , Nvidia NVDA , Qualcomm QCOM and others are significant contributors to the U.S’s strong global technology leadership in data center, edge, AI, automotive and devices. And their investments in R&D are critical to sustain that leadership.

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