William Gallagher
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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Andrew Orr
Wesley Hilliard
Malcolm Owen
Christine McKee
8 Comments
I completely agree on the strategic importance of having a reliable organic supply chain for critical components that power the national economy.
The coalition is being quite pointed in telling Congress that the auto industry should not receive separate treatment.
"...the coalition is clearly concerned about the lobbying of the car industry which has asked the government to use national emergency legislation to force chip makers to prioritise car chips."
“Government should refrain from intervening as industry works to correct the current supply-demand imbalance causing the shortage,” the group said.
We do not need to have chips produced in the United States but we do not need to be dependent upon Communist China and never should have become so.
And big tech companies do not need subsidies. They can make chips in the US profitably and can take a small loss in profit margin for the team.
Ugh, the rot keeps getting worse with this corporate welfare bullshit.