Copper's Spiking - And This Junior Has the Grades to Match

Copper is climbing again - and this time, it looks tariff-proof. A $31M junior just posted nearly 1B lbs of copper equivalent. With insiders and institutions piling in, this could be the next breakout.

China's Chipmaking Investments Top US, Taiwan, South Korea Combined: What It Means For Nvidia, ASML

Natan Ponieman
September 03, 2024

China continues to pour billions into semiconductors, with potential implications for chipmakers.

In the first half of 2024, the country invested $25 billion in chipmaking equipment, according to new data from SEMI, a global semiconductor industry association.

The figure is higher than the combined spending of South Korea, Taiwan and the U.S., which are among the leading world suppliers of chips and manufacturing equipment.

China has been the only country in the group to increase spending year-over-year.

Increased investment by the Asian giant in its domestic manufacturing capabilities could eat away at sales for top chip makers like NVIDIA Corp (NASDAQ:NVDA) and supply chain manufacturers like ASML Holding NV (NASDAQ:ASML).

China Goes All-in On Domestic Production

The Chinese government has been investing heavily into developing the technology needed to gain independence from the global supply chain and reach advanced manufacturing levels.

Recent sanctions by the U.S. and other countries have cut off China from accessing integral technology needed to produce high-performance chips.

Sanctions have also included manufacturing equipment. Last week, the newly-elected Dutch prime minister was expected to block Chinese companies from receiving maintenance on chipmaking machines made by ASML.

The Netherlands-based company has already been banned from selling its most advanced machines to Chinese companies, following pressure from the U.S. on European and Asian manufacturers.

Earlier this week, an analysis found that China's Semiconductor Manufacturing International Corp. is only three years away from producing the most advanced chips for smartphones, currently made by Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM).

The Chinese company can produce chips with similar performance levels to those made by Taiwan Semiconductor in 2021. The news took Taiwan Semiconductor shares down over 5% on Tuesday.

China's $25 billion spending on chipmaking tools puts it on track to another record year, Nikkei Asia reported.

The country is also the biggest investor building semiconductor factories or "fabs."

SEMI is expecting investment into semiconductor manufacturing to rise globally as countries broaden efforts to localize a larger portion of the supply chain. 

Access to high-end semiconductors is now seen as key for guaranteeing national security interests and maintaining military and technological supremacy.

Efforts to secure semiconductor supply chains are reaching new levels. On Tuesday, Taiwan announced an initiative to tighten its access to neon gas, which is used in chip manufacturing.

“We are seeing China continue to buy all the equipment they can for their new mature-node chipmaking facilities,” said Clark Tseng, SEMI’s senior director of market intelligence. “Concerns over potential further [export control] restrictions also pushed them to pull in and secure more equipment they could buy in advance.”

The investments go beyond the country's top chip companies. There are at least more than 10 tier-two chipmakers that are also "aggressively buying new tools," said Tseng.

This is taking China to top other countries in spending growth as well. While the U.S., Taiwan and South Korea have slowed their spending on chipmaking tools in the first half of the year when compared to the same period of 2023, China continues to beat its own records.

The Chinese state is also way ahead of the U.S. in terms of public investment and subsidies for the sector, with investments several times the funding given the Biden administration so far.

Read Also: Marvell Steals The Spotlight From Nvidia, Broadcom In August: What’s Next For Chip Investors?

Is China Slipping Away From Chipmakers' Hands?

The global trend to strengthen domestic chip production could hurt companies that rely too much on China sales.

The country continues to be a major buyer for semiconductor companies, in spite of sanctions placed in recent years. For ASML, it has represented 49% of sales in the last two quarters

China continues to be a major market for Nvidia, despite restrictions that don't allow the company to export its top-of-the-line H100 chips there.

China sales grew for Nvidia during the second quarter to $3.7 billion, up 33.8% on the year and 47.2% above the previous quarter, Nikkei reports.

That's roughly 12% of Nvidia’s total sales for the quarter.

In 2023, China represented 27% of revenue for Intel Corp (NASDAQ:INTC) and 15% for Advanced Micro Devices, Inc. (NASDAQ:AMD), according to CNBC.

Marvell Technology Inc (NASDAQ:MRVL) remains the U.S. chip company with the highest China exposure, at 45% of revenue, according to a recent Zachs report.

For Micron Technology Inc (NASDAQ:MU), it's about 10%.

ETF action: VanEck Semiconductor ETF (NASDAQ:SMH), the largest semiconductor ETF by total assets, took a dive on Tuesday, and is down almost 7%. The same goes for iShares Semiconductor ETF (NASDAQ:SOXX).

Now Read:

  • Nvidia Maintains AI Chip Dominance as Huawei Struggles to Compete: Report

Photo: Shutterstock

Continue Reading...

Popular

Trump keeps saying the GOP mega bill will eliminate taxes on Social Security. It does not

WASHINGTON (AP) — President keeps saying that Republicans' mega legislation will eliminate taxes on federal benefits.

Trump Says Jerome Powell Should 'Resign Immediately' After FHFA Director Alleges Fed Chair Lied About $2.5 Billion Renovation Plan

In Big Tech Just Before Congressional Hearing: ReportTrump wants Powell gone over testimony liesTrump demands Powell's resignation after accusations of misleading testimony from Federal Housing Finance Agency Director. Trump has been critical of Powell in the past.

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

A judge resisted Trump’s order on gender identity. The EEOC just fired her

The federal agency charged with protecting workers’ civil rights has terminated a New York administrative judge who , including President Donald Trump’s executive order decreeing male and female as .

Dubai’s booming restaurant scene is feeling the heat of high costs and high failure rates

DUBAI, United Arab Emirates (AP) — From suspended tables to underwater lounges, some 13,000 food and drink establishments in Dubai pull out all the stops to attract customers in one of the world’s most saturated dining markets.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

Cargo ship carrying new vehicles to Mexico sinks in the North Pacific weeks after catching fire

ANCHORAGE, Alaska (AP) — A cargo ship that had been delivering new vehicles to Mexico sank in the North Pacific Ocean, weeks after crew members abandoned ship when they couldn’t extinguish an onboard fire that left the carrier dead in the water.

What's in the latest version of Trump's big bill that passed the Senate

WASHINGTON (AP) — Republicans are getting closer to the finish line in getting their tax and spending cut bill through Congress with a final House vote possible on Wednesday.

Gold Just Hit Another Record. This Junior Could Be Next. - Ad

This copper junior was the smallest company invited to a top global mining conference. With nearly 1B pounds CuEq and 50,000m of funded drilling, this story won't stay quiet for long.

Trump's Approval Ratings, Tariff Deadlines, Schumer's Criticism, And Defense Budget Shifts: This Week In Politics

Trump's approval ratings drop after Iran attack, hints at tariff deadline flexibility. SC limits judges' power, Schumer criticizes GOP budget, defense budget shifts to missiles and drones.

A Historic Gold Announcement Is About to Rock Wall Street - Ad

The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent - and four tiny miners could be your ticket to 100X gains.

Netflix Is Worth Half Trillion And One Analyst Forecasts Trillion Dollar Valuation

Netflix's stock has surged 43.4% in 3 months and 99% in 1 year, with a market cap of $552 billion. Analysts project continued strong performance and a $1 trillion valuation by 2030, driven by content strategy and ad-supported tier.

OPEC+ to boost oil production by 548,000 barrels per day in August

NEW YORK (AP) — Eight members of the OPEC+ alliance of oil exporting countries say they will boost production by 548,000 barrels per day in August in a move that could further reduce gas prices this year.

Special Gold Investment Soars 2,300% ... 5,090% ... 9,850% - Ad

Gold just hit $3,500-its highest level ever. My team, with nearly 100 years of gold wins, has found a rare opportunity we believe could be great for investors-just like 98 others we identified from the last bull run. See why this gold play could shine brightest in 2025.

FDA requires updated warning about rare heart risk with COVID shots

WASHINGTON (AP) — said Wednesday it has expanded existing warnings on the two leading COVID-19 vaccines about a rare heart side effect mainly seen in young men.

Back This Medical AI Tech - Ad

You don't often find healthcare tech company valued at $4M. HeartSciences is an exception. With $75M invested, including R&D, clinical trials, and product development, their patented AI software is approaching FDA submission, a potential major inflection point.

Mystery Seller Behind $105 Million Plot Next to Jeff Bezos Estate Finally Revealed

A plot of land neighboring Jeff Bezos' property in Miami was sold for a staggering $105 million. The undeveloped lot was sold by German investor Mikhail Peleg.

This Rare Metal Spiked 300%-And One Tiny Firm May Be Riding the Surge - Ad

Antimony prices soared last year, but few investors noticed. One firm, sitting on a historic deposit, is perfectly positioned to benefit as demand grows for defense.

650% Later, Rocket Lab CEO Isn't One Bit Worried

Rocket Lab CEO Peter Beck highlights strong demand for launches from both commercial and government customers.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Trump says he's not planning to extend a pause on global tariffs beyond July 9

WASHINGTON (AP) — President Donald Trump says he is not planning to extend on most nations beyond July 9, when the negotiating period he set would expire, and his administration will notify countries that the trade penalties will take effect unless there are

Ex-Obama Treasury Secretary Jack Lew Sounds Alarm On NYC Under Zohran Mamdani: 'I Worry Deeply'

With Zohran Mamdani officially securing the Democratic nomination in the New York City mayoral race, centrist figures within the Democratic party, such as former Treasury Secretary Jack Lew, are raising questions on the city's future under a self-described Democratic Socialist.

Copper's Rally Is Back. This $31M Junior Is Sitting on a Potential Fortune - Ad

A high-grade copper-gold discovery in Quebec just delivered extremely high grade intercepts. Valuation? Just $31M. With copper breaking out, the timing here could be perfect. Get the symbol here.

Diddy Jury Deadlocked On Racketeering Conspiracy Charge As Verdicts Reached On Sex Trafficking Counts — Jurors To Return Wednesday

Jurors in Sean "Diddy" Combs' trial reached verdicts on four charges related to sex trafficking but remain deadlocked on the racketeering conspiracy charge, with deliberations set to continue.

Anne Wojcicki's nonprofit gets court approval to buy 23andMe for $305 million

NEW YORK (AP) — Anne Wojcicki's bid to buy , the genetic testing company she cofounded nearly 20 years ago, has received the court greenlight.

Copper's Spiking - And This Junior Has the Grades to Match - Ad

Copper is climbing again - and this time, it looks tariff-proof. A $31M junior just posted nearly 1B lbs of copper equivalent. With insiders and institutions piling in, this could be the next breakout.

Trump Hit With Backlash Over Use of Antisemitic Slur at Iowa Rally

President Trump faced criticism from Jewish leaders and lawmakers on Friday after using a term historically associated with antisemitic stereotypes.

Iran resumes international flights after a 20-day suspension

TEHRAN, Iran (AP) — Iran’s Imam Khomeini International Airport has welcomed its first foreign flight since the resumption of international air travel after a 20-day suspension, local media reported Friday.

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

Nations are meeting to drum up trillions to combat poverty — but the US isn't going

UNITED NATIONS (AP) — Many of the world’s nations are gathering starting Monday in Spain for a high-level conference to tackle the and try to drum up trillions of dollars needed to close it. The United States, previously a major contributor, pulled its participation, so finding funding will be tough.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

Greenland has a message for the rest of the world: Come visit

NUUK, Greenland (AP) — has a message for the rest of the world: We’re waiting for you.

Joe Rogan Once Said He Started Doubting The Apollo Missions After COVID-19, Compared Post-Flight Press Conference To A 'Hostage Video'

Joe Rogan told Matt Walsh he began doubting the moon landing after COVID, while Walsh argued that faking the Apollo missions would have been even more unbelievable than achieving them.

Gold Just Hit Another Record. This Junior Could Be Next. - Ad

This copper junior was the smallest company invited to a top global mining conference. With nearly 1B pounds CuEq and 50,000m of funded drilling, this story won't stay quiet for long.

Democratic Congressman Tom Suozzi's Stock Sale Used A Disclosure Loophole: Report

Rep. Suozzi under scrutiny for $50,000 stock sale without disclosure. Congress now addressing loophole in law.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright finstrategist.com
Privacy Policy | Terms of Service