Betting on the Home Team?
This brings us to a company like Intel. Honestly, a few years ago, I’d have written them off as a lumbering giant from a bygone era, a bit like a retired boxer reminiscing about past glories. Yet, here they are, suddenly looking like a strategic national asset. Their massive, eye-wateringly expensive plans to build new factories, or ‘fabs’, in America align perfectly with Washington’s new agenda.
With the CHIPS Act throwing tens of billions in subsidies at companies building on US soil, Intel is positioned to catch a significant chunk of that cash. It’s a remarkable turnaround, moving from has-been to the chosen one. It’s a reminder that in investing, sometimes being in the right place at the right time is just as important as having the best product.
Of course, it’s not just about the American players. The sheer complexity of this industry means you can’t simply cut ties and go it alone. Take Taiwan Semiconductor (TSM). It’s the undisputed king of advanced chip manufacturing, and every major tech company, Apple included, relies on it. TSM is so critical that it’s building factories in Arizona, a geopolitical insurance policy if ever I saw one. Then there’s the Dutch firm ASML, which holds a complete monopoly on the machines needed to make the most advanced chips. America can’t build its chip fortress without ASML’s blueprints and tools.
