Big-name semiconductor companies including Advanced Micro Devices (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM) and Nvidia (NASDAQ:NVDA) are deciding whether to oppose the $52B CHIPS Act on grounds that the legislation does not do enough to support them and heavily favors manufacturers such as Intel (NASDAQ:INTC).
Citing sources familiar with the matter, Reuters added that the way the Senate bill is constructed, it would benefit companies that manufacture chips as they would receive subsidies to build factories and get investment tax credits to purchase tools inside the factories from one version of the law introduced in the House of Representatives, known as the FABS Act.
The news outlet noted that the legislation, which was introduced in 2021, is set to be voted on as soon as Tuesday.
In addition to Intel (INTC), Texas Instruments (TXN) and Micron Technology (MU) would likely benefit from both bills, whereas AMD (AMD), Nvidia (NVDA) and Qualcomm (QCOM) would not, due to the fact they design their own chips but send them to partners such as Taiwan Semiconductor (TSM) to manufacture them.
The aforementioned companies, as well as the industry association trade group the Semiconductor Industry Association, support a version of the FABS Act that has tax credits for manufacturing and chip design, Reuters added.
In a statement obtained by Reuters, the Semiconductor Industry Association said it was encouraged that legislation for the industry was continuing to move, but that it supported both the $52B for the CHIPS Act and the "FABS Act investment tax credit for both manufacturing and design.
Advanced Micro Devices (AMD), Qualcomm (QCOM) and Nvidia (NVDA) did not immediately respond to a request for comment.
Earlier this month, investment firm BMO Capital Markets upgraded Advanced Micro Devices (AMD), noting that it has become a "sustainable computer franchise" thanks to "continued superior execution."