A coalition of leading chipmakers in the US and their customers has formed to lobby the government to invest more in support for domestic manufacturing. The Semiconductors in America Coalition (SIAC) called on Congress to allocate USD 50 billion for domestic chip manufacturing incentives and research initiatives.
The SIAC said its mission is "to advance federal policies that promote semiconductor manufacturing and research in the US to strengthen America’s economy, national security, and critical infrastructure". Its members include AMD, Intel, Analog Devices, Broadcom, Qualcomm, IBM, Nvidia, Micron, Marvell and other semiconductor makers, as well as major customers such as Apple, Amazon Web Services, Google, Verizon, Cisco, AT&T, Microsoft, Dell and GE.
SIAC’s primary focus is to secure funding for the CHIPS for America Act, a law passed by Congress earlier this year in support of local manufacturing. While the law did not come with any funds, US President Joe Biden has supported the funding as part of his proposal to invest in American infrastructure. The SIAC said the money could be included in the bipartisan Endless Frontier Act currently making its way through the Senate.
In a letter to congressional leaders, SIAC members said the current global chip shortage has highlighted the need to ensure a more resilient domestic semiconductor supply chain. Several industries have been affected by the shortages and they want to see long-term solutions put in place.
The coalition cautioned the government against direct intervention to address the supply problems. This refers to press reports that Biden has considered using national defence powers to redirect chip supplies to key industries such as carmakers. The industry said it prefers to sort out the short-term problems on its own.
According to the coalition, the US share of chip manufacturing has fallen to 12 percent from 37 percent in 1990. The companies blame increased state support in other countries for building capacity, which has put the US at a competitive advantage. To restore the balance, the chipmakers want US subsidies to support building more manufacturing at home.
Separately, the Federal Communications Commission started a public consultation to collect information on how the industry has been affected by the chip shortages. The FCC said it was particularly concerned about the impact on telecoms and its own initiatives to support broadband expansion and 5G roll-out. Stakeholders can submit comments until 10 June, and the feedback will be used to develop potential support from government.
