Tech giants in the US calling for funding to solve semiconductor crisis

Apple, Microsoft, and Google have all joined together to form a group called the Semiconductors in America Coalition. The organization includes other slightly smaller companies such as AT&T, Intel Corp, Amazon Web Services, Verizon, Hewlett Packard Enterprise, and many more. The goal of this lobby group is to promote semiconductor manufacturing in the US.

The reason for this lobby group’s formation is the current semiconductor shortage that is affecting these and more companies around the world. Semiconductors are in short supply due to the pandemic. Even the games industry can feel this with the lack of new consoles on the market that are available for purchase.

The primary goal of the group is to raise funding. It will be lobbying congressional leaders for $50 billion to fund domestic chip manufacturing incentives as well as other research incentives within the same area of the tech industry.

US President Joe Biden supports the group, and has previously called on Congress to provide $50 billion to fund the CHIPS for America Act. This bill aims to increase the semiconductor manufacturing capabilities of the country.

In a letter to congressional leaders, the group explained that the semiconductor shortage is affecting companies around the country. It even goes as far as stating that this will cause issues with the economy. It goes on to say that the government should refrain from interfering with the companies in the group as they attempt to feed the demand by increasing domestic supply.

It adds that robust funding for the CHIPS for America Act would help the country establish the manufacturing and production chains required to feed the demand in the long term, and address the issue it already represents to the economy.

In February, President Joe Biden launched a 100 day investigation into supply chains with a goal of finding solutions to the semiconductor shortage.

There are upsides and downsides to semiconductor production becoming more prevalent in the US. Environmentalists will no doubt lobby against such a thing, but with economies around the globe at risk and struggling, it seems like funding to prop them up will only be a welcome expense.