Semiconductor companies and large businesses that use semiconductor chips have formed a new alliance to push tens of billions of dollars in federal funding for semiconductor research and manufacturing in the United States.
New group in US alliance, Semiconductor announced its formation on Tuesday Lack of a global semiconductor Which has caused disruption in the entire economy. Its members include chip companies such as Intel, Nvidia and Qualcomm and companies dependent on semiconductors such as Apple, Google, Amazon Web Services, Microsoft, Verizon and AT&T.
The coalition is calling on Congress to provide $ 50 billion in financing for semiconductor research and manufacturing, which President Biden proposed as part of his 2.3 trillion infrastructure package.
“Leaders of a large and bipartisan group of policymakers in Washington, along with important sectors of the US economy, recognize the essential role of semiconductors in America’s current and future strengths,” said John Nefer, president and chief executive officer Said Semiconductor Industry Association, a business group that represents semiconductor companies.
In a letter to congressional leaders, the new coalition noted the current shortage of semiconductors and said that in the long term, providing federal funds would “help the US create additional capacity, providing critical technologies to ensure more flexible supply.” The chains are essential. We need them. “
Deficiency is acutely felt In the auto industry, Forcing car manufacturers to waste plants. Ford motor It is expected to reduce profits by about $ 2.5 billion this year and reduce vehicle production by about 50 percent in the second quarter.
The new coalition does not include any automakers who have their own ideas to encourage the government’s domestic semiconductor manufacturing. In a letter to Congress leaders last week, groups representing automakers, automotive suppliers and automakers expressed support for Mr. Biden’s $ 50 billion proposal, but as part of the effort to increase production capacity for automotive grade chips The need to emphasize.
The letter – the American Automotive Policy Council, the Motor and Equipment Manufacturers Association and the United Auto Workers Union – suggested that “specific funding for semiconductor facilities that is committed to devoting a portion of its capacity to automotive-grade chip production . “
In a letter to Congress leaders last month, technology trade groups argued against setting aside new production capacity for a specific industry, saying such a move would lead to “unprecedented market intervention”.