- Google, Apple, and Microsoft will be joining automakers to push the government to sanction chip manufacturing subsidies.
- U.S. President Joe Biden has reportedly asked Congress to allocate USD 50 billion for the CHIPS for America Act.
Reportedly, renowned technology companies such as Microsoft Corporation, Apple Inc., Google LLC, and Cisco Systems have joined hands with leading chip producers to influence the U.S. government to sanction chip manufacturing subsidies.
For the record, a cross-sector alliance of semiconductor using companies named Semiconductors in America Coalition was formed to conduct research and bolster manufacturing amid a global chip shortage crisis. This coalition currently includes Amazon Web Services, Cisco Systems Inc., Hewlett Packard Enterprise Company, General Electric Company, Verizon Communications Inc., and AT&T Inc.
This coalition has asked U.S. lawmakers to offer funds under the CHIPS for America Act. The U.S. President Joe Biden has also asked Congress to allocate USD 50 billion for the same, cited sources.
Automakers too have been persuading the Biden administration to ensure chip supply for automobile manufacturers. However, experts claimed using a national security law to redirect semiconductor chip supply to automakers would be harmful to other industries.
In this context, the Semiconductors in America Coalition has claimed these funds will be used to increase production capacity and have more responsive supply chains. Moreover, the coalition has urged the U.S. government to avoid favoring a single industry and interfering since it takes various measures to balance the supply and demand and combat the shortage.
Speaking of the shortage, the global chip crisis has severely hit automakers with Ford Motor Company stating that it may cut second-quarter production by almost 50%. Electronics manufacturers such as Apple Inc. have also been impacted, with the iPhone maker reporting a loss of USD 4 billion by June end.
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