A major blow for the Trump administration's chip plan. Taiwan's tariff negotiators said this week they never discussed commerce secretary Lutnik's 50-50 semiconductor production split and they're just not interested. This matters because Secretary Lutnik's threatening 100% tariffs unless companies make one chip domestically for every chip imported.But raw semiconductor imports were only $45 billion last year, about 1% of total US imports. Most chips come in finished products like phone and servers. Enforcin ...

Core Insights - Veralto Corporation (VLTO) is strengthening its leadership in the Water Quality segment, capitalizing on growth opportunities in the U.S. industrial and municipal sectors [1][4] - The CHIPS Act of 2022 is a significant tailwind for VLTO, enhancing semiconductor production which requires ultra-pure water, a critical input for advanced chip manufacturing [1][4] - Long-term demand for digital tools and technologies is expected to drive sustained growth in semiconductor production, benefiting VLTO's water solutions [2] Industrial Sector - The semiconductor sector, despite recent challenges, has a positive long-term outlook due to rising demand for digital tools, AI, and autonomous technologies [2] - VLTO's focus on high-purity applications for semiconductors differentiates it from competitors like Xylem (XYL), positioning the company to capture a significant market share [2] - Xylem continues to innovate in industrial water treatment, indicating a competitive yet expanding sector [2] Municipal Sector - Increased U.S. government funding for water infrastructure improvements is a strong catalyst for growth in the municipal sector [3] - Investments aimed at modernizing water systems across the U.S. are expected to enhance demand for VLTO's scalable water solutions [3] - The company's ability to provide tailored solutions positions it well to benefit from these initiatives, alongside competitors like Pentair (PNR) [3]

Core Viewpoint - Apple has announced a significant expansion of its U.S. investment strategy, committing an additional $100 billion to American manufacturing over the next four years, following a previous $500 billion commitment [1][4]. Investment Strategy - The new investment is part of Apple's American Manufacturing Program (AMP), which aims to deepen the supply chain and boost domestic production [5]. - Key partners in the AMP include major companies such as Corning, Texas Instruments, and Samsung [5]. Financial Performance - Apple reported strong third-quarter fiscal 2025 results, with earnings per share of $1.57, exceeding estimates and showing a 12.1% increase year-over-year [8]. - Revenues rose 10% year-over-year to $94 billion, surpassing the estimated $88.9 billion, marking the highest quarterly revenue growth in over three years [8]. Production and Employment - As part of the AMP, Apple has committed $2.5 billion to manufacture all iPhone and Apple Watch cover glass in the U.S. and plans to hire 20,000 U.S. employees [6]. - Apple aims to produce over 19 billion chips by 2025 and is investing in cloud infrastructure and talent development [7]. Market Response - Following the announcement of the new investment, Apple shares increased by 5.1% on August 6 [3]. - Investors are encouraged to consider ETFs with significant allocations to Apple, such as Global X PureCap MSCI Information Technology ETF and Vanguard Information Technology ETF, which have strong buy ratings [3][11][12]. Future Outlook - For the ongoing fiscal fourth quarter, Apple expects "mid to high-single digit" sales growth, although tariffs pose a significant challenge, with anticipated costs of approximately $1.1 billion due to new tariffs [10].