Shares of Advanced Micro Devices (NASDAQ: AMD) climbed 5.5% on Tuesday ahead of a key Senate vote that could help to fuel the growth of the U.S. semiconductor industry.
Congress is expected to vote on a bill known as the Chips for America Act. The proposed legislation could authorize roughly $52 billion in subsidies and tax credits. The Chips Act is intended to spur investment in the manufacturing of semiconductors in the U.S.
The vote comes as chip shortages are slowing the production of a wide array of goods, from mobile phones to automobiles and nearly everything in between. Some lawmakers also see the bill as a way to reduce the country's reliance on international production hubs, such as China and Taiwan, at a time when geopolitical strife in Europe and other areas is threatening to upend long-standing supply agreements.
Source Fool.com