Semiconductor stocks rally as Biden plans supply chain executive order

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President Joe Biden plans to sign an executive order in the coming weeks to authorize supply chain reviews for critical goods like semiconductors.

White House press secretary Jen Psaki says the administration is "identifying potential chokepoints in the supply chain and actively working alongside key stakeholders in industry and with our trading partners to do more now."

In a letter a consortium of U.S. chip companies that includes Intel, Qualcomm, and Advanced Micro Devices asked Biden for "substantial funding for incentives for semiconductor manufacturing" as part of the economic recovery and infrastructure plans.

The Philadelphia Semiconductor Index (NASDAQ:SOXX) is trading up 2.8% versus the 0.7% gain for the broader tech sector (NYSEARCA:XLK).

Leading the semi charge higher are U.S.-based semi equipment companies KLA (KLAC +8.4%), Lam Research (LRCX +7.6%), and Applied Materials (AMAT +7.4%), which would all benefit from capacity expansions. Taiwan-based TSMC (TSM +3.5%), which already has plans for a new fab in Arizona, is moving higher.

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