The CEO of semiconductor giant Intel Corp (NASDAQ: INTC), Pat Gelsinger, tweeted his praise for the U.S. Senate’s sweeping bipartisan vote (64 to 33) on the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act.
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The $280 billion CHIPS Act aims to support domestic chip manufacturing in the U.S. while attempting to reduce dependency on China and other nations. It also aims to skirt the persistent chip shortage issue, which has been hampering the production of everything from cars to phones and medical equipment in the U.S. The bill proposes $52 billion in subsidies to chip manufacturers and $24 billion in tax credits for chip plants, which have been flagged as possibly being misused by the companies.
Gelsinger has been one of the major advocates of the bill and has voiced his support time and again. The CEO applauded the Senate and called the step advancing “American leadership in semiconductor manufacturing and R&D.” The House of Representatives plans a vote on the bill today, which, if approved, could be signed into law by the President next week.
The Twitterati replied with accolades to the CEO for pushing the bill through and best wishes for the company’s future prospects.
Meanwhile, all major semiconductor stocks bounced on the news yesterday. Intel was up 3.7%, while rival Nvidia (NVDA) jumped almost 8.5%, and Advanced Micro Devices (AMD) popped 6.3%.
