Apple, Google, Intel and others form an alliance to urge the US government to provide subsidies for chip production


Tencent Technology News reported on May 12 that the world’s largest chip buyers, including apple, Microsoft, Google and other technology giants, are joining the ranks of top chip manufacturers such as Intel, NVIDIA and Qualcomm to form a new lobbying alliance to urge the US government to provide subsidies for chip manufacturing.
The new group, called SIAC, also includes Amazon’s cloud computing arm, AWS. The alliance said on Tuesday it had asked U.S. lawmakers to fund the U.S. chip bill. Earlier, US President Joe Biden had asked Congress to provide $50 billion for the bill.
SIAC’s mission is to promote federal policies to promote semiconductor manufacturing and research in the United States to strengthen the economy, national security and critical infrastructure of the United States.
John Neuffer, chairman and chief executive officer of the semiconductor industry association (SIA), the US chip industry organization, said: “semiconductors are the brain of systems and technologies that lead us economic growth, national security, digital infrastructure and global technology. Leaders from key areas of the U.S. economy, as well as a large bipartisan group of policy makers in Washington, recognize the importance of semiconductors in the current and future strength of the United States. SIAC is looking forward to working with Congress and Biden administration to make necessary federal investment in domestic semiconductor manufacturing and research in accordance with the chip act, so that more chips needed by our country will be produced in the United States. ”
“Strong funding for the chip bill will help the United States build the additional chip capacity necessary to build a more resilient supply chain and ensure that key technologies are in our hands when we need them,” the Semiconductor Alliance said in a letter to democratic and Republican leaders in both houses of Congress
Auto industry groups are also pressing the Biden government to ensure chip supply to auto factories. But last week, media reported that U.S. government officials were reluctant to use the national security law to redirect computer chips to automakers because it could harm other industries.
The auto industry was the first to feel the impact of chip shortage, forcing auto manufacturers to idle factories. Ford said last month that it expected the chip shortage to cut auto production by about 50 per cent in the second quarter and cut its profit this year by about $2.5 billion.
The new alliance does not include any automobile manufacturers, who have their own ideas on how the government should encourage domestic semiconductor manufacturing. In a letter to congressional leaders last week, groups representing automakers, auto suppliers and auto workers expressed support for Biden’s $50 billion proposal, but stressed the need to increase the production capacity of automotive chips.
The letter, from the automobile policy committee of the United States, the association of automobile and equipment manufacturers and the National Federation of auto workers, recommended “more funding for semiconductor facilities dedicated to the production of part of their capacity for automotive chip production.”.
Members of the new alliance also include other chip consumer industry companies, such as wireless operators at & T and Verizon, as well as Cisco, general electric and Wyeth. The Organization warned the government not to take sides in single industries such as automobile manufacturers. “The government should avoid intervention because the industry is trying to correct the current imbalance between supply and demand that leads to shortages,” the Semiconductor Alliance said
Technology companies such as apple have also been hit by a shortage of chips, but far less so than automakers. The iPhone maker said last month that it would lose $3 billion to $4 billion in sales in the second quarter due to a shortage of chips. But analysts said that was just a fraction of Apple’s $72.9 billion in sales in the quarter.
Semiconductor production and factory locations have increasingly become the focus of attention. The current shortage of chips has affected the shipment of various products from iPhones to pickups. This is due to the surge of demand in some economic sectors due to the recovery from the most severe period of the epidemic. The United States has the companies that dominate the chip industry’s revenue, while most of the manufacturing of key electronic components is done in Asia.
Technology companies want government support to stop the decline in US chip production. According to SIA data, the market share of chip production in the United States has dropped from 37% in 1990 to 12%, but they do not want the government to intervene in more direct chip supply channels´╝ł Tencent technology reviser / Jinlu)