Coalition pushes for funding for US chip manufacturing

Big US chip buyers have formed the Semiconductors in America Coalition to push the government into providing subsidies for IC manufacturing.

Members of the coalition include Microsoft, Alphabet, Cisco, HP, Verizon, AT&T, GE and Intel.

The coalition is lobbying the US government to fund the CHIPS for America Act which aims to provide $50 billion for chip manufacturing.

“Robust funding of the CHIPS Act would help America build the additional capacity necessary to have more resilient supply chains to ensure critical technologies will be there when we need them,” said a letter sent by the coalition to Democratic and Republican leaders in the House of Representatives and the Senate.

At the same time the coalition is clearly concerned about the lobbying of the car industry which has asked the government to use national emergency legislation to force chip makers to prioritise car chips.

“Government should refrain from intervening as industry works to correct the current supply-demand imbalance causing the shortage,” the group said.