Apple stock was trading up at $145.46 as of 02:32 PM EDT.
Semiconductors are up as Micron (NASDAQ:MU) plans to spend $100 billion and an Apple partner is “cautiously hopeful.” Along with the broader markets, semiconductor stocks rose on Tuesday as memory chip maker Micron (NASDAQ:MU) announced it would invest up to $100B in a new facility in upstate New York and a major manufacturing partner of Apple (NASDAQ:AAPL) said it is “cautiously optimistic” about the fourth quarter.
After its company announced record September revenue, Apple (NASDAQ:AAPL) supplier Foxconn (OTCPK:FXCOF) said it was “cautiously optimistic” about the crucial period. The month’s overall income increased by 82.3% from month to month and 40.4% from year to year to $25.9B as “new product launch and smooth mass production” happened without a hitch.
The supply chain, the pandemic, and inflation dynamics still need to be closely monitored, Foxconn (OTCPK:FXCOF) added.
Following news that the European Union would require consumer electronics manufacturers to adopt USB-C charging for devices as early as 2024, several Apple (AAPL) suppliers, including STMicroelectronics (NYSE:STM) and Infineon (OTCQX:IFNNY), had significant increases.
After announcing plans to invest up to $100 billion in a major new chip manufacturing plant in upstate New York, Micron Technology (MU) rose more than 5% to $54.48. This is yet another indication that new federal investments are encouraging domestic investment in the semiconductor industry.
It will take two decades to build the chipmaking complex in Clay, New York’s new Micron project. It has been barely 2 months since President Joe Biden signed the CHIPS and Science Act of 2022, providing $52 billion in federal grants and subsidies for chip companies. This will help them build more domestic factories and facilities. Micron (MU), based in Boise, Idaho, is the company that made the investment.
Apple Stock Alongside Other Top Semiconductors Surge
In midday trade, Apple stock increased by almost 2%. Sanjay Mehrotra, chief executive of Micron (MU), claimed that the CHIPS Act was directly to blame for his company’s plans to build a factory in New York. Intel (NASDAQ:INTC) increased by roughly 2% along with Micron (NASDAQ:MU), while Advanced Micro Devices (NASDAQ:AMD), Nvidia (NASDAQ:NVDA), and Qualcomm (NASDAQ:QCOM) added 3%, 4%, and 3.5%, respectively.
Separately, on Tuesday, South Korean electronics giant Samsung (OTCPK:SSNLF) announced that it would increase the production of advanced semiconductors by three times over the next five years in order to keep up with strong demand unaffected by the faltering global economy.
The electronics firm said it wanted to achieve 2 nm chips in commercial production by 2025 and 1.4 nm processors by 2027. The company supplies chips for a variety of clients, including Nvidia (NASDAQ:NVDA), Qualcomm (NASDAQ:QCOM), and Tesla (NASDAQ:TSLA), among others.
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