Good morning, CFOs. The U.S. government is giving chip maker GlobalFoundries $1.5 billion in grants to build and expand facilities in New York and Vermont, the first major award in a program that aims to reinvigorate domestic chip production.

The award from the Commerce Department kicks off what is expected to be a series of cash injections into semiconductor manufacturing projects in Arizona, Texas, New York and Ohio in the coming weeks. Chip makers Intel, Taiwan Semiconductor Manufacturing, Samsung Electronics and Micron Technology have all submitted applications for the government to cover a portion of the billions of dollars it costs to build cutting-edge factories.

The GlobalFoundries award announced Monday is contingent on a round of due diligence before a final agreement is reached. The money will be released in stages as the projects reach construction and production milestones.

The grants, which have been under negotiation for months, are a cornerstone of the $53 billion Chips Act. The 2022 act, pushed by the Biden administration and a bipartisan group of lawmakers, outlined new taxpayer-funded investments in chip research and production after the U.S.’s share of global chip manufacturing dwindled to around 12% in 2020, from 37% in 1990. The legislation set aside $39 billion specifically for manufacturing subsidies.

The effort dovetails with a growing urgency among governments, manufacturers and chip users worldwide to shore up the chip-making industry. Similar to oil, chips are now seen as resources that are critical to national security.

📈 Economic indicators

Tuesday

• Earnings: Caesars Entertainment, Diamondback Energy, Home Depot, Medtronic, Walmart 
• The Conference Board releases its Leading Economic Index for January.

Wednesday

• Earnings: Analog Devices, Etsy, Nvidia, Rivian Automotive, Synopsys 
• The Federal Open Market Committee releases minutes from its late-January monetary-policy meeting.

​Thursday

• Earnings: Block, Dominion Energy, Intuit, Keurig Dr Pepper, Live Nation Entertainment, Moderna, PG&E 
• S&P Global releases both its Manufacturing and its Services Purchasing Managers’ Indexes for February.
• The National Association of Realtors reports existing-home sales for January.

Friday

• Earnings: Warner Bros. Discovery

During the pandemic, scores of Silicon Valley investors and executives decamped to sunnier American cities, criticizing San Francisco’s government as dysfunctional and the city’s relatively high cost of living. Tech-firm founders touted their success at raising money outside the Bay Area and encouraged their employees to embrace remote work.

Four years later, that bet hasn’t really worked out. San Francisco is once again experiencing a tech revival. Entrepreneurs and investors are flocking back to the city, which is undergoing a boom in artificial intelligence. Silicon Valley leaders are getting involved in local politics, flooding city ballot measures and campaigns with tech money to make the city safer for families and businesses. Investors are also pushing startups to return to the Bay Area and bring their employees back into the office.

• Capital One plans to buy Discover Financial Services in a deal that would marry two of the largest credit-card companies in the U.S.
• Forvia, one of the world’s largest auto parts suppliers, said it was reducing up to 10,000 jobs—for an annual saving of about 500 million euros, or roughly $540 million starting in 2028—as it navigates a global automotive shift to electric vehicles.
• More Chinese travelers hit the road during the Lunar New Year holiday than ever before, but in a sign of postpandemic caution, many restricted themselves to shoestring budgets—a mixed signal as the world’s second-largest economy struggles to regain momentum.
• Activist investor Carl Icahn struck a deal for two JetBlue Airways board seats just days after he unveiled a nearly 10% stake in the struggling airline.
• Americans’ waning demand for sneakers and sportswear has major players like Nike, Adidas and Foot Locker in a rut. British newcomer JD Sports Fashion sees the U.S. market’s weakness as the moment to pounce.

📰 Other headlines

• SEC Tells Appeals Court: Yes, Audit Reports Do Matter
• An Easy Financing Source Pushes Some Small Businesses Into Bankruptcy
• How Generative AI Can Improve Businesses
• For Elon Musk Lately, It’s All About Russia, Russia, Russia.
• An Executive Bought a Rival’s Stock. The SEC Says That’s Insider Trading.
• Musk’s SpaceX Forges Tighter Links With U.S. Spy and Military Agencies
• Carmakers Park Aging Models as U.N. Cyber Rule Comes Into Effect

Conn's, a Woodlands, Texas-based home-goods retailer, said interim Chief Financial Officer Timothy Santo will stay in the role on a permanent basis. Santo has served as interim CFO since Nov. 17. He previously served as chief accounting officer for Conn's, and the company said he will continue to conduct accounting officer duties until a permanent successor is named.

— Ben Glickman contributed to this newsletter.

The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics ranging from corporate tax accounting, regulation, capital markets, management and strategy.

Follow us on X @WSJCFO. The WSJ CFO Journal Team is reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.

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