The Phnom Penh Post

New tech-firm coalition seeks $50B in US aid for chip shortage response


A NEWLY formed coalition of technology firms on May 11 called for $50 billion in US government aid to boost incentives for domestic semiconduc­tor manufactur­ing in the face of a deepening chip shortage.

The Semiconduc­tors in America Coalition urged Congress to allocate funds for research and manufactur­ing, calling the effort essential for economic and national security.

The coalition – which includes giants including Apple, Microsoft, Google, Amazon, AT&T and Verizon and several dozen other firms – said it seeks funding for the CHIPS for America Act, which was passed by lawmakers earlier this year but without funds appropriat­ed.a

“Semiconduc­tors are the brains of the systems and technologi­es that enable America’s economic growth, national security, digital infrastruc­ture, and global technology leadership,” said John Neuffer, president and CEO of the Semiconduc­tor Industry Associatio­n, whose member firms are part of the coalition.

“Leaders from a broad range of critical sectors of the US economy, as well as a large and bipartisan group of policymake­rs in Washington, recognise the essential role of semiconduc­tors in America’s current and future strength.”

The shortage has added to a supply crunch for the technology sector and a variety of other manufactur­ing sectors including automotive as the economy emerges from a pandemic-induced slowdown.

“To address this problem in the short term, government should refrain from intervenin­g as industry works to correct the current supply-demand imbalance causing the shortage,” the coalition said in a letter to congressio­nal leaders.

“But for the longer term, 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.”

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