The U.S. government awarded GlobalFoundries $300 million in CHIPS Act R&D funding and took an approximate 1% equity stake in the chipmaker in late July 2026.2 The move came as semiconductor stocks fell sharply: the SOXX index dropped roughly 25% and leveraged semiconductor ETFs lost about 62% from their highs.1
The selloff contrasts with corporate results. Amkor Technology reported better-than-expected quarterly earnings, citing strong demand across its packaging and test business.1 KLA also posted record results in the same period, underscoring that equipment and materials suppliers remain profitable despite the equity rout.
Consolidation continued alongside the selloff. Skyworks Solutions and Qorvo finalized leadership for their planned merger, with Skyworks' Bob Bruggeworth saying the announcement reflects a partnership that has shaped integration planning "from the very beginning."4 The combined company aims to build on what Bruggeworth called "engineering excellence, innovation, and customer focus" at both firms.4
AI infrastructure investment kept advancing on separate tracks. Kalray and Bull agreed to jointly develop high-speed networking technology for next-generation AI and HPC systems, a deal Kalray CEO Éric Baissus said confirms "the relevance of our technological vision."5 Nvidia separately committed $5 billion to Safe Superintelligence, and SK hynix locked in long-term AI-memory supply agreements, according to the source narrative.
AMD's Mark Papermaster pointed to continued momentum in AI compute demand as chipmakers position for the next hardware cycle.3 That framing matters for investors: government backing of domestic manufacturing capacity, record vendor earnings, and continued M&A activity all signal institutional conviction that AI infrastructure spending keeps growing, even as public equity markets reprice risk.
The divergence puts pressure on how investors read chip valuations. A government equity stake in a foundry is a long-horizon industrial policy bet, not a quarterly trading signal. Record earnings at Amkor and KLA show near-term demand remains intact. The 25% index decline suggests markets are pricing in a slowdown that current order books and government commitments do not yet reflect.
