U.S. tech giants like Apple, Microsoft ask for government subsidies

The new group, the Semiconductors in America Coalition, is asking U.S. lawmakers to provide funding for the Chip Manufacturing Act. Biden has already asked Congress to fund the bill with $50 billion.

“Sufficient funding for the Chip Manufacturing Act can help the U.S. increase the necessary capacity, create a more resilient supply chain, and ensure that critical technologies are present in the U.S. when we need it,” the semiconductor Alliance said in the letter.

Chip shortages are already affecting car production. U.S. auto industry groups have asked the Biden administration to secure chip supplies for auto factories. But a Biden administration is reluctant to pass legislation to transfer computer chips to cars because doing so would hurt other industries. Chip buyers such as Apple, Microsoft, Alphabet and chipmakers such as Intel have formed a new lobbying group that is pressuring the U.S. government for subsidies to make chips.

Amazon AWS, AT&T, Cisco, General Electric, Hewlett Packard Enterprise, Verizon are also members of the new group. The Semiconductor Alliance believes that the government should not favor a single industry, saying: “The government should try not to intervene when the industry is trying to correct the shortage of chips caused by the imbalance between supply and demand.”

Apple has also been hit by chip shortages, but not as badly as the auto industry. Last month, Apple said that it would lose $3-4 billion in revenue this quarter because of a shortage of chips, but Apple’s revenue in the third fiscal quarter is expected to be as high as $72.9 billion, and the loss of revenue is not high.

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