TXN - BofA seeks chip-industry winners from massive infrastructure spending

With President Biden set to queue up a massive infrastructure plan (ranging to $2 trillion in cost over eight years), BofA zooms in on the semiconductor segment to highlight companies it says could be important beneficiaries as "key building blocks of the digital economy." BofA calls out four areas ripe for change in a digital infrastructure push: Semicap equipment; 5G infrastructure/broadband; Smart industrial/automation; and Clean energy/electric vehicles. Semicap equipment vendors are ideally positioned to benefit from "silicon nationalism," the BofA team writes, referring to the push to enhance domestic remanufacturing to become more self-sufficient in chips. U.S. semiconductor manufacturing capacity as a percentage of the total world as fallen from 37% to about 12%, it notes, but the fiscal 2021 defense reauthorization features the CHIPS America Act as an incentive for domestic manufacturing, with billions in matches to state and local incentives for foundries, along with money for new RD

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BofA seeks chip-industry winners from massive infrastructure spending