The Chequebooks Are Open
When politicians get spooked, they tend to throw money at the problem, and this time is no different. The U.S. CHIPS Act, with its cool $52 billion, and the EU’s own €43 billion plan are not just policy papers. They are declarations of technological independence. They are a clear signal that the era of chasing the lowest cost at any price is over. Security and resilience are the new buzzwords, and a whole ecosystem of companies stands to benefit. This great decoupling, a theme we explore in our Tech Supply Chain: Could Trade Wars Create Opportunity? basket, is creating a powerful investment tailwind.
So, who are the likely winners in this new, fragmented world? Well, you have to start with the giants. Taiwan Semiconductor Manufacturing Company, or TSMC, is the undisputed king. They make the most advanced chips for everyone who matters, and while they sit uncomfortably close to mainland China, their political alignment with the West makes them the go-to partner. Then you have ASML, a Dutch company with a beautiful monopoly. They make the one machine everyone needs to produce cutting-edge chips, and they are forbidden from selling it to China. It’s a licence to print money, frankly. And let’s not forget Intel, the old American champion, now trying to stage a comeback by building new factories on home soil.
