Government Chips

The US government is pouring money to produce chips on American soil through the CHIPS act. Government involvement in a market almost always disrupts the supply and demand dictated by the invisible hand. CHIPS act will inflate the semiconductor supply, and it will cause the price to drop sharply. This is an opportunity!

<5nm chips have been expensive, but a necessary component for most advanced computing devices such as processors, graphics cards, smart phones, ML compute devices, etc. These chips tend to be the component that causes the high end devices to be cost prohibitive. And they are typically not able to be mass produced quickly due to expansion limitations for modern foundries.

That is all about to change. The market will see an influx of advanced chips looking for devices. I predict that the cost reduction opens the door for mass market consumer devices that is faster and cheaper. And hardware entrepreneurs will enjoy a window of opportunity to make government subsidized products. I can’t wait to see what happens in 5 years!