July 2 - Chip makers rallied on Wednesday after the Senate approved boosting investment tax credits for U.S. semiconductor facilities to 35% from 25%.
Intel (INTC, Financial) shares slid about 3% following news its CEO may halt marketing of 18A technology to external clients, while Taiwan Semiconductor Manufacturing (TSM, Financial) climbed about 3%. Micron Technology (MU, Financial) added roughly 1%, and GlobalFoundries (GFS, Financial) held steady.
AI chip leaders also gained: Nvidia (NVDA, Financial) surged about 3%, Advanced Micro Devices (AMD) rose around 2%, Broadcom (AVGO) edged up nearly 2%, and Qualcomm (QCOM) inched higher by about 1%.
Smaller players saw similar moves. Lattice Semiconductor (LSCC) and Marvell Technology (MRVL) each jumped about 3%, Texas Instruments (TXN) rose 2%, and Analog Devices (ADI) added 1%. Equipment suppliers Applied Materials (AMAT, Financial) and KLA (KLAC) climbed about 2% apiece, while ASML (ASML) and Lam Research (LRCX) were up about 1% each.
The expanded credits build on the Biden administration's CHIPS and Science Act incentives. House lawmakers now aim to send the bill to President Trump by the July 4 deadline. Investors will watch whether the enhanced subsidies spur fresh U.S. chip plant announcements.
