Shares of technology giant International Business Machines (NYSE: IBM) -- you know it better as IBM -- are up 3.7% as of 3:33 p.m. ET Monday, following through on Friday's strong rally effort. The gain is largely being driven by the company's role in a new semiconductor production pact forged late last week between Canada's Prime Minister Justin Trudeau and United States President Joe Biden.

It's not exactly news that U.S. tech companies are looking for ways to manufacture more of their computer chips domestically, aiming to avoid future supply chain disruptions like the ones spurred by the COVID-19 pandemic. However, it was a narrative that seemingly didn't heavily involve legacy technology outfit IBM.

Now it does. As part of the new Canadian/U.S. semiconductor industry production agreement, the announcement posted Friday at Whitehouse.gov explains, "Both countries will advance a cross-border packaging corridor, beginning with Canada and IBM providing a significant investment to develop new and expanded packaging and testing capabilities at its Bromont [Quebec] facility."

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Source Fool.com