Apple joins new coalition lobbying for US chip manufacturing subsidies
Technology giants including Apple, Intel, and Microsoft have formed a new coalition, aimed at getting U.S. processor manufacturing subsidies as the worldwide shortage continues.
As the Biden administration calls the global chip shortage a national security issue, a new coalition aims to lobby the government to incentivize U.S. processor production. Companies such as Apple, Microsoft, and Google, which are key buyers of processors, have joined with producers including Intel.
According to Reuters, the newly-formed Semiconductors in America Coalition, is asking the U.S. government to fund the new CHIPS for America Act. President Biden has already asked Congress to support the act with $50 billion.
"Robust funding of the CHIPS Act would help America build the additional capacity necessary to have more resilient supply chains to ensure critical technologies will be there when we need them," the group wrote in a letter sent to Democratic and Republican leaders in both houses of Congress.
The new coalition includes chip-buyers across multiple industries, such as AT&T, Cisco Systems, HP, and General Electric. The global chip shortage is particularly affecting the automotive industry, but the coalition does not want government intervention.
"Government should refrain from intervening as industry works to correct the current supply-demand imbalance causing the shortage," the group continued.
Separately, the government has been in talks with Intel and TSMC over increasing processor production in the U.S. In February 2021, President Biden also signed an executive order addressing the shortage.
"This is about making sure the United States can meet every challenge we faced in this new era of pandemics, but also in defense cybersecurity, climate change, and so much more," said President Biden at the time. "The best way to do that is by protecting and and sharpen and America's competitive edge by investing here at home."
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