Top Tech giants join force for funding US chip generation.

  • A global chip deficit has hit automakers hard, with Ford Motor Co stating it could halve second-quarter production.
  • Apple Inc, Microsoft Corp, and Alphabet Inc’s Google are among the world’s largest chip buyers, joining top chipmakers like Intel Corp to form a new lobbying coalition to push for government chip manufacturing subsidies.

The newly established Semiconductors in America Coalition, which includes Amazon.com’s Amazon Web Services, announced Tuesday that it had asked US lawmakers to fund the CHIPS for America Act. President Joe Biden has requested $50 billion in funding.

In a letter to Democratic and Republican leaders in both houses of Congress, the group stated that “robust funding of the CHIPS Act will help America develop the additional capacity. Which is required to provide more resilient supply chains to ensure vital technologies will be there when we need them.”

For Latest IT Industry News:

Follow us on Google News and Twitter

 

A global chip shortage is wreaking havoc on automakers, with Ford Motor Co predicting a halving of second-quarter demand.

Industry associations have pressed the Biden administration to ensure chip supply to automakers. However, media recently revealed that officials were hesitant to use a national security law to reroute computer chips to automakers because it would damage other industries.

Some of the other chip-consuming companies are included in the new alliance, which includes AT&T, Cisco Systems, General Electric, Hewlett Packard Enterprise, and Verizon Communications Inc. It warned against government policies that favoured a single industry, such as automobile manufacturers.

“While the industry works to address the current supply-demand mismatch that is causing the shortage,” the group said, “government should refrain from interfering.”

Apple and other tech firms are also affected by the chip shortage, albeit to a lesser extent than automakers.

According to Refinitiv revenue forecasts, Apple will lose $3 billion to $4 billion in revenues in the current quarter ending in June due to the chip shortage, but that’s just a fraction of the $72.9 billion in sales analysts predict for Apple’s fiscal third quarter.

Read also IBM’s first 2nm chip

For Latest IT Industry News:

Follow us on Google News and Twitter

For Latest IT Industry News, Follow us on Google News and Twitter