American tech companies (not to mention Car manufacturers) are feel the pinch chip shortages, and they are regrouping in hopes of increasing production in the United States. A series of tech giants form the Semiconductor Coalition in America to secure funds for the recently enacted CHIPS for America Act, which gave incentives for domestic chip manufacturing and research, but failed to provide the necessary funds.
The alliance includes a mix of companies, including familiar tech brands like Amazon, Apple, Google and Microsoft as well as carriers like AT&T and Verizon (the parent company of Engadget for the moment). Companies that were already part of the Semiconductor Industry Association, such as AMD, Intel, Qualcomm and Samsung, are also part of the coalition.
The goal is simple: Companies want enough US-based manufacturing to create “more resilient supply chains” and ensure that the technology is there when it’s needed. SIAC opposes any short-term intervention because it believes that it can itself correct the supply-demand imbalance.
The alliance already has sent a letter House and Senate leaders asking for “solid” funding for the CHIPS Act.
There is no guarantee that SIAC will succeed in obtaining the funding it wants. President Biden has asked for $ 50 billion to fund the CHIPS Act, however, and industry funding is less prone to partisan fights than other issues. Suffice it to say, the right financing could be transformative – the United States now accounts for only 12% of global chip manufacturing capacity, and a surge of new or expanded factories could both increase that percentage and reduce the country’s dependence on components manufactured abroad.
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