Yahoo Finance Live anchors discuss the rise in semiconductor stocks as the Biden administration considers putting new export restrictions in place.
BRIAN SOZZI: We're also locking on the chip sector, as the Biden administration is prepping new export restrictions for semiconductors. This comes after new licensing requirements on some shipments have already been placed. But more export curbs are under consideration, including ones targeting high end memory chip manufacturing capabilities and advanced components. And of course, we're seeing a bid-- or at least, we were in the pre-market-- in some big name-- Micron, Intel, you name it. This seems to be good for them if it happens.
BRAD SMITH: Yeah, it seems to. I mean, for Intel, it sounds like they're going to make even more moves to kind of shore up liquidity. Right now, all of these things considered, with what is happening from the White House or the US administration's perspective, but then additionally, for Intel, they've got an IPO offering that they're going to kind of roll out to spin off Mobileye.
And with that, you imagine that there's going to be a major payout for Intel as well, a company that Intel had acquired for $15 billion back in 2017. And any type of public offering that they are able to successfully move forward with for Mobileye, that would allow them to at least see that return on investment, perhaps, some of that cash, the capital used towards the other major chip developments that Intel is trying to move forward with and breaking ground on right now, too.
JULIE HYMAN: There's also some significant stuff happening on the policy level when it comes to chip makers, although this more affects foreign companies that-- it has to do with the ban on investment in Chinese artificial intelligence companies, in particular, a company called SenseTime.
This is something that US officials plan to do, but it just-- basically, what it does is blocking China's largest chip maker from buying US manufacturing tools. So it's unclear to me that it directly affects the US chip makers. But maybe at the margin, either they can't sell as much into China. I'm a little-- to be perfectly frank, I'm a little confused as to exactly what the implications for the US chip industry will be.
BRAD SMITH: Sure, and then how that would impact some of the other imports coming in from China as well, which, on that front, I mean, we've heard more from the Eastern Hemisphere today. Samsung, they're going to unveil even more plans for their processing and production capacity. They announced that this morning, too. So there's kind of a lot of overlap and especially is going to come down, to your point, to the policy implications.