US lawmakers have approved legislation to subsidise its domestic semiconductor industry to help it compete with China and Taiwan

Denso's operating earnings of 63.6 billion yen ($473 million) for the three months to June 30 fell short of an average estimate of 81 billion yen

Its operating profit rose to 14.1 trillion won ($10.8 billion) for the quarter ended June 30 from 12.57 trillion won a year earlier, higher than the company's own estimate of 14 trillion won

The "Chips and Science" act provides about $52 billion in subsidies for US semiconductor production and an investment tax credit for chip plants estimated at $24 billion

Server chips had been the only remaining bright spot in memory chip demand that drove SK Hynix to report a 56% jump in operating profit

The bill provides about $52 billion in subsidies for US semiconductor production as well as an investment tax credit for chip plants estimated to be worth $24 billion

South Korean conglomerate has already committed $7bn to build two new gigafactories in Tennessee and Kentucky in joint venture with Ford

Intel didn’t give financial details but said the first products would be manufactured in the next 18- to 24-month period

Historically, chip demand – such as for computers in the 1980s, cellphones in the 2000s and smartphones in the 2010s – would lead manufacturers to aggressively expand capacity.

The discovery has big implications for Chinese chip companies, as it "helps reduce China's reliance on Western technologies" at a time when it was restricted by US sanctions, the report said

The South Korean giant has applied for incentives in 11 potential chip manufacturing facilities in Texas, according to documents filed with state authorities.

Chief executive Hidetoshi Shibata said a shortage of supplies of raw materials in Europe and North America was a greater risk than boosting production in Japan