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Breaking GE

Posted November 10, 2021

Aaron Gentzler

By Aaron Gentzler

Breaking GE

The company founded by Thomas Edison in 1892 -- General Electric -- is breaking up.

GE announced yesterday it will spin off into three publicly traded companies, breaking out along the lines of its aviation, health care and energy segments.

“The company said it hopes to spin off the health care business to shareholders in early 2023,” CNN Business says, “and that the separation of its renewable energy and power business will occur in early 2024. After the spinoffs, the aviation-focused company will keep the GE name.

“Shares of GE (GE) surged as much as 17% in premarket trading on the news before retreating to about a 6% gain in early trading after the open.”

This morning, shares are barely in the green.

Send your opinions to, TheRundownFeedback@StPaulResearch.com

Your Rundown for Wednesday, November 10, 2021...

When the Chips Are Down…

On Tuesday, U.S. Commerce Secretary Gina Raimondo called on Congress to fund initiatives to increase domestic production of semiconductors in the midst of a global supply-chain snarl that’s upended the $500 billion chip industry.

The New York Times reports: “The lack of the tiny components — which has pinched makers of cars, game consoles, medical devices and many other goods — has been a stark reminder of the foundational nature of chips, which act as the brains of computers and other products.”

As a result, Secretary Raimondo says: "The lack of domestic production in America of semiconductors poses not only an economic threat but a national security threat.

"We need Congress, the House, to pass the CHIPS Act or USICA [U.S. Innovation and Competition Act] as quickly as possible so that we can get to the business of making more chips in America."

Fox Business notes: “The U.S. Innovation and Competition Act, which passed the Senate in June, includes $52 billion to boost semiconductor research, design and manufacturing.”

But even without federal funding, chip manufacturing is in flux…

“Chief among the changes is a long-term shift in market power from chip buyers to sellers, particularly those that own factories that make the semiconductors,” says NYT.

“The most visible beneficiaries have been giant chip manufacturers like Taiwan Semiconductor Manufacturing Company, which offer services called foundries that build chips for other companies.”

That’s happening on a macro level abroad. Closer to home? “The shortage has also sharply bolstered the influence of lesser-known chip makers,” the article continues, “which design and sell thousands of chip varieties to thousands of customers.”

We mentioned one such company last week -- ON Semiconductor (which recently changed its name to onsemi) -- and business is booming for a group of other U.S. chipmakers as a result of global shortages.

[Ed. note: Our own chief technology analyst Ray Blanco is putting the finishing touches on an exclusive briefing to identify some of the sector’s highest-flyers. Keep watching this space for the date and time… ]

Market Rundown for Wednesday, Nov. 10, 2021

The S&P 500 is down 16 points to 4,660.

Oil is down 0.20% to a penny under $84 for a barrel of West Texas Intermediate.

Gold’s catching a bid: up 1.35% to $1,855.60 per ounce.

And Bitcoin’s up about 2% at the time of writing to $68,500.

Send your comments and questions to, TheRundownFeedback@StPaulResearch.com

Have a good day, and we’ll catch up Friday.

For The Rundown,

Aaron Gentzler

Aaron Gentzler
Editor, The Rundown
TheRundownFeedback@StPaulResearch.com

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