Chip: why Apple, Google and Microsoft are pushing for state subsidies
Apple joins Microsoft and Google in the Semiconductors in America Coalition, the lobby that pushes for state subsidies for the production of chips in the US
Buyers and chip makers join forces in the United States.
Apple, Microsoft, Alphabet, Amazon formed a coalition with chip makers like Qualcomm and Intel on Tuesday to put pressure on the US government.
The coalition is asking Congress to provide $ 50 billion for semiconductor research and manufacturing, which President Biden has proposed as part of his $ 2.3 trillion infrastructure package.
Tech companies like Apple are also affected by the chip shortage, albeit to a lesser extent than automakers .
Automotive groups have urged the Biden administration to secure chip supply for auto factories. But the Semiconductors in America Coalition warned that government action shouldn't favor a single sector.
At the moment, analysts believe the global chip shortage will persist until 2022.
All the details.
THE SEMICONDUCTORS IN AMERICA COALITION
On Tuesday the fledgling Semiconductors in America Coalition said it had asked US lawmakers to provide funding for the CHIPS for America Act, for which President Joe Biden asked Congress to provide $ 50 billion.
Semiconductor companies and large chip companies have therefore joined forces to push federal funding for semiconductor research and manufacturing in the United States.
WHO PARTICIPATES BEYOND APPLE, HP ALPHABET AND MICROSOFT
Its members include leading chip makers such as Intel, Nvidia and Qualcomm.
But the new lobby group also includes other big chip-consuming companies, with members such as AT&T, Cisco Systems, General Electric, Hewlett Packard Enterprise, and Verizon Communications.
FUNDING FOR THE CHIPS ACT
The Semiconductors in America Coalition supports the Chips for America Act, in which President Biden asks Congress for a $ 50 billion fund.
"Solid funding from the Chips Act would help America build the additional capacity needed to have more resilient supply chains to ensure critical technologies will be there when we need them," the group said in a letter to Democratic and Republican leaders. of both houses of the United States Congress.
THE LACK OF CHIPS THAT HIT THE AUTOMOTIVE INDUSTRY
The automotive industry has been particularly affected by the shortage of semiconductors. Many car manufacturers have closed their plants by reducing production. Ford Motor expects the shortage to cause a drop in profits of approximately $ 2.5 billion this year and a reduction in vehicle production of approximately 50% in the second quarter.
AND THE ACCOUNTS OF APPLE
But the tech industry will also suffer from the chip crisis.
Last month, the iPhone maker reported that it will lose $ 3 billion to $ 4 billion in sales in the current quarter ending June due to chip shortages. However, that equates to only a small percentage of Apple's $ 72.9 billion in sales expected for its fiscal third quarter, according to Refinitiv's revenue estimates.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/chip-perche-apple-google-e-microsoft-premono-per-sussidi-statali/ on Wed, 12 May 2021 04:32:13 +0000.