Bring on the chips 💻

Plus: Pete Davidson's ferry | Friday, January 21, 2022

Open in app View in browser     Axios Closer By Hope King and Nathan Bomey ·Jan 21, 2022 Welcome to the weekend. 😢 On our minds today... the loss of two entertainment greats in rocker Meat Loaf and comedian Louie Anderson. The world will be quieter and a little less funny. Today's newsletter is 700 words, a 2½-minute read. Edited by Pete Gannon. 🔔 The dashboard: The S&P 500 closed down 1.9%, capping its worst week since March 2020. Biggest gainer? CF Industries Holdings (+2.6%). ¯\_(ツ)_/¯ Biggest decliner? Netflix (-21.8%). The streaming service reported slowing subscriber growth after markets closed yesterday.     1 big thing: No quick fix for chip shortage Illustration: Aïda Amer/Axios   A steady drumbeat of investments in new American semiconductor factories should help solve the chip shortage in the long run — but for now, the problem persists, Nathan writes. Why it matters: The chip crisis has rippled through the economy, triggering price increases and product shortages, and exposed an economic security issue. Driving the news: Intel today announced plans to build two chip plants in Licking County, Ohio, in a $20 billion investment to provide the critical component used in electronics, tools and vehicles. Intel says it'll hire 3,000 workers at the 1,000-acre site in Ohio and could eventually invest $100 billion there, "making it one of the largest semiconductor manufacturing sites in the world." The big picture: Chipmakers, spurred on by the Biden administration and a bipartisan push on Capitol Hill, have announced nearly $80 billion in investments in U.S. manufacturing since the start of 2021, according to the White House. Those include a $17 billion Samsung factory in Texas, a $20 billion Intel site in Arizona, and an up-to-$30 billion Texas Instruments plant in Texas. Yes, but: Chip plants take years to build. Intel's Ohio site won't come online until 2025. That means there won't be any immediate impact from recent announcements. The bottom line: The chip crisis is expected to ease somewhat in the first half of 2022 as existing plants catch up to demand, but experts expect shortages to continue popping up into 2023 and potentially beyond.     2. Charted: Disappearing bank branches Data: S&P Global Market Intelligence; Chart: Will Chase/Axios Bank branch closures hit a record last year, Hope writes. By the numbers: The number of net closures increased by 38% from 2020, according to S&P Global Market Intelligence. The big picture: Banks, which had been closing branches steadily for about a decade prior to the pandemic, hastened plans to consolidate locations as a way to cut costs during the health crisis. Details: Wells Fargo topped the list with a net 267 closures.  Ohio-based Huntington Bancshares had the most net closures (221) on a percentage basis among banks with 1,000 or more branches.     3. What's happening 🤝 IBM agreed to sell its health care data and analytics assets within its Watson Health business to investment firm Francisco Partners. (Press release) 🚙 General Motors is planning to invest $6.5 billion across two projects in Michigan to build EVs and battery cells, expected to create 4,000 jobs. (The Detroit News) 🐔 Pilgrim's Pride, one of the largest chicken producers in the country, is raising wages by $2 per hour for workers at its Mayfield, Kentucky, production facility, after the area was impacted by a tornado.     A message from Axios Axios goes Pro     Axios Pro delivers breaking news updates alongside deeper reporting, in a concise format that boosts clarity and saves you time. It's Axios, tailor-made for pros like you. Start your 14-day free trial today.     4. Tackling student talent Illustration: Aïda Amer/Axios   The Biden administration is widening the scope on STEM student visas, Hope writes. Why it matters: Higher education enrollment has continued to decline in the U.S. as the country looks to stay competitive in science and technology on the global stage.  Driving the news: The Department of Homeland Security today added 22 new fields of study to a specialized visa program for nonimmigrant students, the STEM Optional Practical Training program. In addition, eligible undergraduate and graduate students can now stay in the country for up to three years after finishing — up from one year. Be smart: The changes may not make a significant difference in getting more students to study in the U.S., the WSJ notes.  Increases in the number of visas or expanding visa eligibility have to be made by Congress. Details: Environmental science categories dominate the 22 new fields — bioenergy, general forestry, anthrozoology, climate science, Earth systems science, oceanic science, data visualization, as well as industrial and organizational psychology.   Share Axios and earn rewards If you like this newsletter, your friends may, too! Refer your friends and get free Axios swag when they sign up. Be a good friend and share   5. Pete Davidson buys a ferry Photo: Angela Weiss/AFP via Getty Images   "Saturday Night Live" comic Pete Davidson is known for his love of New York's Staten Island. He just doubled down, Axios' Pete Gannon writes. Davidson, fellow SNL'er Colin Jost, and comedy club owner Paul Italia just bought a decommissioned Staten Island Ferry, with plans to convert it into a club, the AP reported. Details: The group paid $280,100 for the 277-foot vessel at auction from the city's Department of Citywide Administrative Services, and now it has 10 business days to find some dock space. "We're working on that," Italia told AP.     6. What they're saying "It wasn't our finest hour, I think, as a country." — Doug Parker, CEO of American Airlines Group, responding to the way the 5G rollout was handled this week.     A message from Axios Axios goes Pro     Axios Pro delivers breaking news updates alongside deeper reporting, in a concise format that boosts clarity and saves you time. It's Axios, tailor-made for pros like you. Start your 14-day free trial today.   Like this email style and format? Bring the strength of Smart Brevity® to your team — more effective communications, powered by Axios HQ.   Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Suite 1300, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. Change your preferences or unsubscribe here.   Was this email forwarded to you? Sign up now to get Axios in your inbox.   Follow Axios on social media: