Shares of Intel (INTC 3.12%) rose in Monday trading. The company’s share price ended the day up 3.1%, according to data from S&P Global Market Intelligence.

While there were no business-specific developments affecting Intel today, the stock was boosted by news that another U.S. semiconductor company is receiving significant government subsidies. Texas Instruments A press release from the company announced that it would receive $1.6 billion in new funding through the CHIPS Act to build semiconductor factories in Texas and Utah.

The company also said it expects tax credits of between $6 billion and $8 billion.

The USA continues to rely on domestic chip production

Intel stock has suffered a lot of late due to poor business performance and impending uncertainty. The company’s share price has fallen 57% since the beginning of the year, and investors are looking for positive developments that could help the semiconductor stock rebound.

Today’s news that Texas Instruments would receive a new investment distribution under the CHIPS and Science Act suggested to investors that the U.S. government would continue to support the development of the domestic chip industry.

In particular, the funding of Texas Instruments shows that the US remains focused on building domestic chip manufacturing capacity. The semiconductors that Texas Instruments produces are much less advanced than those of fab leaders such as Semiconductor manufacturing in Taiwan, Samsungand Intel, but the significant new funding provided by the CHIPS Act demonstrates that the country is taking a diversified approach to industry financing.

Can the fab business help Intel recover?

While many companies develop their own chips, semiconductor manufacturing is predominantly carried out by a handful of companies. TSMC in particular dominates the contract chip manufacturing market and its leadership position is even more pronounced when it comes to advanced semiconductors used in artificial intelligence and other advanced applications.

For this reason, Taiwan is currently the center of global chip production. However, investors and analysts fear that China could invade the country or otherwise exert greater control over it.

Of the $39 billion provided by the CHIPS Act to promote domestic chip production, Intel was by far the largest recipient, receiving $8.5 billion in grants and additional loans.

The company is still undergoing a massive restructuring and will lay off 15% of its global workforce. Providing third-party manufacturing services could eventually become a key performance driver for Intel, but the company still has a lot to prove – and it will take years for the fruits of this strategy to pay off.