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Biden Administration Releases Plan for $50 Billion Investment in Chips – The New York Times

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The Department of Commerce issued guidelines for companies angling to receive federal funding aimed at bolstering the domestic semiconductor industry.

WASHINGTON — The Department of Commerce on Tuesday unveiled its plan for dispensing $50 billion aimed at building up the domestic semiconductor industry and countering China, in what is expected to be the biggest U.S. government effort in decades to shape a strategic industry.

About $28 billion of the so-called CHIPS for America Fund is expected to go toward grants and loans to help build facilities for making, assembling and packaging some of the world’s more advanced chips.

Another $10 billion will be devoted to expanding manufacturing for older generations of technology used in cars and communications technology, as well as specialty technologies and other industry suppliers, while $11 billion will go toward research and development initiatives related to the industry.

The department is aiming to begin soliciting applications for the funding from companies no later than February, and it could begin disbursing money by next spring, Gina Raimondo, the secretary of commerce, said in an interview.

The fund, which was approved by Congress in July, was created to encourage U.S. production of strategically important semiconductors and spur research and development into the next generation of chip technologies. The Biden administration says the investments will lessen dependence on a foreign supply chain that has become an urgent threat to the country’s national security.

“This is a once-in-a-lifetime opportunity, a once-in-a-generation opportunity, to secure our national security and revitalize American manufacturing and revitalize American innovation and research and development,” Ms. Raimondo said. “So, although we’re working with urgency, we have to get it right, and that’s why we are laying out the strategy now.”

Trade experts have called the fund the most significant investment in industrial policy that the United States has made in at least 50 years.

It will come at a pivotal moment for the semiconductor industry.

Tensions between the United States and China are rising over Taiwan, the self-governing island that is the source of more than two-thirds of the most advanced semiconductors. Shortages of semiconductors have also helped to fuel inflation globally, by increasing delivery times and prices for electronics, appliances and cars.

Semiconductors are crucial components in mobile phones, pacemakers and coffee makers, and they are also the key to advanced technologies like quantum computing, artificial intelligence and unmanned drones.

With midterm elections fast approaching, the Biden administration is under pressure to demonstrate that it can use this funding wisely and lure manufacturing investments back to the United States. The Commerce Department is responsible for choosing which companies receive the money and monitoring their investments.

In its strategy paper, the Commerce Department said that the United States remained the global leader in chip design, but that it had lost its leading edge in producing the world’s most advanced semiconductors. In the last few years, China has accounted for a substantial portion of newly built manufacturing, the paper said.

The high cost of building the kind of complex facilities that manufacture semiconductors, called fabs, has pushed companies to separate their facilities for designing chips from those that manufacture them. Many leading companies, like Qualcomm, Nvidia and Apple, design chips in the United States, but they contract out their fabrication to foundries based in Asia, particularly in Taiwan. The system creates a risky source of dependence for the chips industry, the White House says.

The department said the funding aimed to help offset the higher costs of building and operating facilities in the United States compared with other countries, and to encourage companies to build the larger type of fabs in the United States that are now more common in Asia. Domestic and foreign companies can apply for the funds, as long as they invest in projects in the United States.

To receive the money, companies will need to demonstrate the long-term economic viability of their project, as well as “spillover benefits” for the communities they operate in, like investments in infrastructure and work force development, or their ability to attract suppliers and customers, the department said.

Projects that involve economically disadvantaged individuals and businesses owned by minorities, veterans or women, or that are based in rural areas, will be prioritized, the department said. So will projects that help make the supply chain more secure by, for example, providing another production location for advanced chips that are manufactured in Taiwan. Companies are encouraged to demonstrate that they can obtain other sources of funding, including private capital and state and local investment.

The Commerce Department is setting up two new offices housed under the National Institute of Standards and Technology to set up the programs.

One of the department’s biggest challenges will be ensuring that the government funds add to, rather than displace, money that chip making companies were already planning to invest. Companies including GlobalFoundries, Micron, Qualcomm and Intel have announced plans to make major investments in U.S. facilities that may qualify for government funding.

The chips bill specifies that companies that accept funding cannot make new, high-tech investments in China or other “countries of concern” for at least a decade, unless they are producing lower-tech “legacy chips” destined to serve only the local market.

The Commerce Department said it would review and audit companies that receive the funding, and claw back funds from any company that violates the rules. The guidelines also forbid recipients from engaging in stock buybacks, so that taxpayer money doesn’t end up being used to reward a company’s investors.

“We’re going to run a serious, competitive, transparent process,” Ms. Raimondo said. “We are negotiating for every nickel of taxpayer money.”

In addition to the new prohibitions on investing in chip manufacturing facilities in China, officials in the Biden administration have agreed that the White House should take executive action to scrutinize outbound investment in other industries as well, Ms. Raimondo said.

But she added that the administration was still working through the details of how to put such a policy in place.

Earlier versions of the chips bill also proposed setting up a broader system to review investments that U.S. companies make abroad to prevent certain strategic technologies from being shared with U.S. adversaries. That provision, which would have applied to cutting-edge technologies beyond the chips sector, was stripped out of the bill, but officials in the Biden administration have been considering an executive order that would establish a similar review process.

The United States has a review system for investments that foreign companies make in the United States, but not vice versa.

The Biden administration has also taken steps to restrict the types of advanced semiconductors and equipment that can be exported out of the United States.

In statements last week, Nvidia and Advanced Micro Devices, both based in Silicon Valley, said they had been notified by the U.S. government that exports to China and Russia of certain high-end chips they produce for use in supercomputers and artificial intelligence were now restricted. These chips help power the kind of supercomputers that can be used in weapons development and intelligence gathering, including large-scale surveillance.

Ms. Raimondo declined to discuss the export controls in detail but said the department was “constantly evaluating” its efforts, including how best to work with allies to deny China the equipment, software and tooling the country uses to enhance its semiconductor industry.

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Hannan Announces Closing of Strategic Investment – AccessWire

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VANCOUVER, BC / ACCESSWIRE / September 26, 2022 / Hannan Metals Limited (“Hannan” or the “Company”) (TSXV:HAN)(OTC PINK:HANNF) is pleased to announce the closing of the strategic private placement financing (the “Private Placement“) announced on September 20, 2022.

Pursuant to the Private Placement, Teck Resources Limited (TECK.A and TECK.B, TECK) (“Teck“) has subscribed for 9,180,000 common shares (the “Common Shares“) of Hannan at a price of $0.28 per Common Share (the “Issue Price“) for gross proceeds to Hannan of C$2,570,400. Prior to the Private Placement, Teck held no securities of Hannan. Upon closing of the Private Placement, Teck holds 9.0% of the issued common shares of Hannan. No finder’s fees or commissions were paid on the Private Placement. The Common Shares are subject to a statutory hold period, expiring on January 24, 2023. The Private Placement is subject to final acceptance of the TSX Venture Exchange.

Michael Hudson, CEO, states, “We welcome Teck as a shareholder and thank them for their support of both our technical and social teams, as well support for Hannan’s strategy to open up new search spaces in Peru’s frontiers to find the next generation of large-scale global copper-silver and copper-gold deposits. This strategy has led some of the biggest names in our Industry to partner with Hannan, with both Teck and JOGMEC now involved at equity and joint venture levels, respectively. Our partnerships allow us to strategically plan sequential tests of multiple large-scale mineral systems in the foreland basins and back-arc of Peru over the coming years. The opportunities are tremendous.”

The Company intends to use the net proceeds from the Private Placement for exploration on the Company’s mineral exploration projects in Peru and Ireland, and for working capital and general corporate purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or the securities laws of any state of the United States, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements.

About Hannan Metals Limited (TSXV:HAN) (OTCPK: HANNF)

Hannan Metals Limited is a natural resources and exploration company developing sustainable resources of metal needed to meet the transition to a low carbon economy. Over the last decade, the team behind Hannan has forged a long and successful record of discovering, financing, and advancing mineral projects in Europe and Peru. Hannan is a top ten in-country explorer by area in Peru.

On behalf of the Board,

“Michael Hudson”
Michael Hudson, Chairman & CEO

Further Information

www.hannanmetals.com
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez, Corporate Secretary,
+1 (604) 685 9316, [email protected]

Forward Looking Statements. Certain disclosure contained in this news release may constitute forward-looking information or forward-looking statements, within the meaning of Canadian securities laws, including statements regarding the intended use of the net use of proceeds of the Private Placement. These statements may relate to this news release and other matters identified in the Company’s public filings. In making the forward-looking statements the Company has applied certain factors and assumptions that are based on the Company’s current beliefs as well as assumptions made by and information currently available to the Company. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. These risks and uncertainties include but are not limited to: the proposed use of the net proceeds received from the Private Placement; political environment in which the Company operates continuing to support the development and operation of mining projects; the threat associated with outbreaks of viruses and infectious diseases, including the novel COVID-19 virus; risks related to negative publicity with respect to the Company or the mining industry in general; planned work programs; permitting; and community relations. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news.

SOURCE: Hannan Metals Limited

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Change-makers meet to build ocean investment community – Deutsche Bank

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More of the world’s ultra-high net worth individuals are getting behind ocean conservation and impact, as seen this week when Deutsche Bank’s International Private Bank (IPB) and the Ocean Risk and Resilience Action Alliance (ORRAA) host more than 100 influential investors, entrepreneurs and philanthropists in Mallorca, Spain to accelerate ocean sustainability.

The inaugural Deutsche Bank x ORRAA Ocean Conference aims to build an investment community to support the sustainable blue economy, starting with Deutsche Bank’s clients.

As one of Europe’s leading private banks with global reach, Deutsche Bank’s International Private Bank services over 3.3 million clients worldwide, including many of the world’s leading entrepreneurial families, philanthropists and ultra-high net worth individuals. Those attending the conference collectively represent tens of billions of euros in capital and are actively seeking to support and create impact in ocean health for its long-term sustainability.

Over three days, international ocean advocates and experts will convene to address some of the most pressing challenges facing the Ocean, with guest speakers including:

  • Sir Ben Ainslie CBE, Olympic sailor
  • Ralph Chami, Assistant Director, Financial Policies Division, Institute for Capacity Development, IMF
  • José María Figueres Olsen, Costa Rican businessman and politician who served as President of Costa Rica from 1994 to 1998
  • Louise Heaps, Head of Sustainable Blue Economy, World Wildlife Fund
  • Prof. Callum Roberts, lead scientist on the Future Climate Coral Bank project
  • Lewis Pugh, OIG, British/South African endurance swimmer and United Nations Patron of the Oceans
  • Her Excellency Ilana Seid, UN Ambassador for Palau;
  • Her Excellency Aminath Shauna, Minister of Environment for the Maldives
  • Dr. Richard Spinrad, Undersecretary of Commerce for Oceans and Atmosphere, NOAA Administrator, Government of the United States of America

Global Head of the IPB and Chief Executive Officer of EMEA, Claudio de Sanctis said: “Seventy five percent of our clients say they wish to leave a legacy that has a positive impact in the world. A healthy ocean ecosystem is vital for a healthy planet, so supporting sustainable ocean solutions is an investment in the future like no other. Deutsche Bank is committed to accelerating sustainable solutions for the ocean by enabling private capital into ocean finance to create lasting impact for future generations.”

ORRAA Executive Director Karen Sack said: “We need a step change in how we go about channeling investment into ocean and coastal resilience. Crucially, we also have to develop the pipeline of projects and companies from around the world and, in particular, the Global South which need access to investment. This is something which ORRAA is focused on delivering. The conference we are co-hosting with Deutsche Bank is a crucial staging post to growing the investment community in the Ocean.”

The Deutsche Bank x ORRAA Ocean Conference brings together ocean impact startups, private capital, NGOs, and ocean science experts to accelerate investment into the ocean ecosystem.

Ocean impact startups joining the conference include EcoSubsea, Ocean Bottle, Matter, Avant Meats, Biofeyn, Coral Vita, ECOncrete, and Bound4Blue.

– Ends –

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How to Start Investing With Little Money – Yahoo Canada Finance

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Written by Tony Dong at The Motley Fool Canada

Successful investing involves holding a diversified portfolio of stocks, staying the course, and making consistent contributions. All of this helps take advantage of compound interest, which Albert Einstein described as “the eighth wonder of the world.”

Still, for investors starting out with less money (think $1,000ish), investing can be daunting. Some stocks have high share prices that can be a barrier to entry for new investors. Trying to buy enough shares of different companies to stay diversified can be difficult.

This can be discouraging, but fear not! There is a solution if you’re strapped for cash. With this alternative, even the smallest of investment portfolios can grow strongly.

ETFs are the solution

Thanks to exchange-traded funds (ETFs), investors no longer need vast sums of money to buy dozens of individual stocks. ETFs can hold a basket of up to thousands of various stocks. Some ETFs are basically all-in-one stock portfolios that are managed on your behalf by a professional. They trade on exchanges like any other stock with their own ticker symbol.

This approach is capital efficient. For instance, an ETF might trade at a price of $20 per share yet hold over 1,000 stocks in it. With your $1,000, you can now buy 50 shares of that ETF and gain proportional exposure to all of its underlying companies. This way, you become diversified without needing to buy 1,000 different stocks!

Index ETFs are ideal

ETFs do have a cost, though — the management expense ratio (MER). This is a percentage fee deducted from your investment on an annual basis. For example, an ETF that charges a 0.05% MER would cost an annual fee of 0.05 * $1,000 = $5 on your $1,000 investment.

Keeping this as low as possible is ideal. In general, the ETFs with the lowest MERs are index funds. These are passively managed investments that track an existing stock market index, like the S&P 500. With index funds, fees are low since the fund manager isn’t actively trying to pick stocks, so fund turnover remains at a minimum.

I like the S&P/TSX 60 Index. This index tracks 60 blue-chip, large-cap stocks listed on the TSX. Buying the S&P/TSX 60 is a great way to track the long-term performance of the Canadian stock market while gaining access to a portfolio of dividend stocks.

Why the S&P/TSX 60?

From 2000 to date, the S&P/TSX 60 has returned a compound average growth rate (CAGR) of 6.59% with dividends reinvested. This is a respectable return that could turn your initial $1,000 deposit into six-figures over two decades with modest contributions. Let’s use a real-life example to see this in action.

Imagine you started investing in 2000 as a broke 18-year-old student with just $1,000 to your name. You invest it all in an index fund tracking the S&P/TSX 60. Every month thereafter, you scrounge up $100 and invest it promptly in a disciplined and consistent manner.

After holding the ETF for 22 years, consistently putting in $100 every month, reinvesting all dividends, and never panic selling during crashes (even through the Dot-Com Bubble and the 2008 Great Financial Crisis), you would end up with $126,353.

If you started with more than $1,000, held longer, or contributed more than $100 monthly, your returns would have been even better. With this strategy, maximizing your contribution rate and staying invested is key. Don’t try and time the market!

Do you want to implement this passive, hands-off investing strategy? A great ETF to use is iShares S&P/TSX 60 Index ETF, which has a low MER of just 0.20%. XIU trades at around $30 per share right now, making it accessible to investors with a smaller portfolio.

The post How to Start Investing With Little Money appeared first on The Motley Fool Canada.

Before you consider iShares S&P/TSX 60 Index ETF, you’ll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in September 2022 … and iShares S&P/TSX 60 Index ETF wasn’t on the list.

The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 21 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 9/14/22

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Fool contributor Tony Dong has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2022

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