Afternoon Coffee: Biden administration to introduce $2 trillion infrastructure plan; Intel invests $20 billion for chip shortage; Fast food restaurants procure new ingredients

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President Joe Biden is set to unveil a more than $2 trillion infrastructure plan on Wednesday that will include provisions to create manufacturing jobs and rescue failing American infrastructure, according to CNBC.

The plan will raise the corporate tax rate to 28% while combining measures to stop offshoring of profits to fund the plan within 15 years. The plan includes details like a $621 billion budget to put toward transportation infrastructure like bridges, roads, public transit, ports, airports and electric vehicle development.

Another $300 billion would go toward improving drinking-water infrastructure. It also allows for a $580 billion investment in American manufacturing, research and development, and job training efforts, the article said.

Intel to use outsourcing, $20 billion investment to fight semiconductor shortage

Intel Corp.’s chief executive officer said last week that the company is going to use a new plan that mixes increased outsourcing and a commitment to spend $20 billion on new factories that can help address the global semiconductor chip shortage, according to the Wall Street Journal.

New CEO Pat Gelsinger said that Intel is going to rely on third-party chip-making partners, including some cutting-edge processors, starting in 2023. However, Gelsinger said Intel won’t be abandoning its historic roots of being a designer and manufacturer of chips and will retain most production in-house.

To help develop its manufacturing plan, Intel will build two new chip factories in Arizona. “This puts them in the best position to get out products that are competitive as quickly as possible,” Wedbush Securities analyst Matthew Bryson told the WSJ. He also said that “it’s going to be a long-term process to get Intel back to where it once was.”

Restaurant deliveries cause fast food chains to rethink sourcing, suppliers of food

When customers order fast food delivery, they’re expecting crunchy fries and crispy chicken sandwiches. In an effort to keep food crispy, chain restaurants are tweaking recipes, trying different additives and procuring new types of ingredients, according to Reuters.

Delivery orders for US restaurants were 154% higher in January 2021 than a year prior. Delivery comprised 12% of all restaurant orders in January 2021. But crispier food costs more, the article said.

Suppliers for the world’s largest restaurant chain — McDonald’s — told Reuters that the company is trying new formulations for breading of its chicken sandwiches. Potato processor company Lamb Weston Holdings Inc., which supplies McDonald’s and KFC, said they have a “revolutionary coating,” seeing demand for its potatoes quadruple in three months.

“With so much riding on takeout and delivery, it’s important your fries perform perfectly every time,” Lamb Weston said in an advertisement targeting restaurants, Reuters reported.

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