Semiconductor makers and users form a group to push for chip funding.

Semiconductor firms and large companies that use chips have shaped a new coalition to push for tens of billions of in federal funding for semiconductor analysis and manufacturing within the United States.

The new group, the Semiconductors in America Coalition, introduced its formation on Tuesday amid a world semiconductor scarcity that has brought on disruptions all through the financial system. Its members embrace chip makers like Intel, Nvidia and Qualcomm and firms that depend on semiconductors, like Apple, Google, Amazon Web Services, Microsoft, Verizon and AT&T.

The coalition is asking on Congress to present $50 billion for semiconductor analysis and manufacturing, which President Biden has proposed as a part of his $2.three trillion infrastructure package deal.

“Leaders from a broad range of critical sectors of the U.S. economy, as well as a large and bipartisan group of policymakers in Washington, recognize the essential role of semiconductors in America’s current and future strength,” stated John Neuffer, the president and chief govt of the Semiconductor Industry Association, a commerce group.

In a letter to congressional leaders, the brand new coalition famous the scarcity of semiconductors and stated that in the long run, federal funding “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.”

The scarcity has been acutely felt in the auto industry, forcing carmakers to idle plants. Ford Motor expects the shortage to cause profit to be about $2.5 billion lower this year and to cut vehicle production by about 50 percent in the second quarter.

The new coalition does not include any automakers, which have their own ideas for how the government should encourage domestic semiconductor manufacturing. In a letter to congressional leaders last week, groups representing automakers, automotive suppliers and autoworkers expressed support for Mr. Biden’s $50 billion proposal but emphasized the need to increase production capacity for automotive grade chips as part of the effort.

The letter — from the American Automotive Policy Council, the Motor & Equipment Manufacturers Association and the United Automobile Workers union — suggested providing “specific funding for semiconductor facilities that commit to dedicating a portion of their capacity to motor vehicle-grade chip production.”

In a letter to congressional leaders last month, technology trade groups argued against setting aside new production capacity for a specific industry, saying that such a move would amount to “unprecedented market interference.”

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