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GlobalFoundries receives $1.5B grant from Biden's CHIPS Act

GlobalFoundries (GFS) shares are on the move after the chip designer received a $1.5 billion grant from President Biden's CHIPS Act. This company is the biggest known state-side foundry for semiconductor production.

Yahoo Finance's Madison Mills reports live from the New York Stock Exchange to take a closer look at the stock and the future impacts of CHIPS Act funding on other chip producers, such as Intel (INTC).

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Eyek Ntekim

Video Transcript

SEANA SMITH: Time for today's stock to watch, and that is GlobalFoundries shares on the rise here, up about 5% after receiving $1.5 billion grant from the Biden administration. Madison Mills is on the floor of the New York Stock Exchange. The latest on that move, Maddie.

MADISON MILLS: Yeah, Seana, this is the name that is the latest beneficiary of the CHIPS Act from the Biden administration, which has over $50 billion to dole out to companies that are going to be able to produce chips stateside, and that is exactly why GFS, that's the ticker symbol associated with GlobalFoundries, was picked for this funding, again, to the tune of $1.5 billion.

That is why we're seeing a lot of upward movement in this name this morning. Now having said that, we're not only focusing on GlobalFoundries, which by the way, again, they're known for being the biggest stateside foundry in terms of chips production. That is why they were picked for this funding.

But we're also looking at shares of Intel this morning up off of news that Intel could be the next company selected by the Biden administration for funding from the CHIPS Act, and that is according to reporting from Bloomberg News. So the big question here is, which companies can investors be looking at moving forward to suss out whether or not they will receive funding from the Biden administration?

Because we tend to see that as the CHIPS Act goes, so does the market and that is exactly what we're seeing with GlobalFoundries today up over 5% off of this funding news.

BRAD SMITH: All right, Maddie. Thanks so much. We're going to check back in closer to the opening bell.