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US chip makers are asking for significant incentives

US chip makers are asking for significant incentives. Problems with the supply of chips have also affected popular game consoles.

US chip makers are asking for significant incentives
Yazar: Tom Roberts

Yayınlanma: 11 Şubat 2021 21:12

Güncellenme: 2 Kasım 2024 16:43

US chip makers are asking for significant incentives

In a letter to President Joe Biden, a group of US chip makers called on Thursday to provide "substantial funding for semiconductor production incentives" as part of its economic and infrastructure recovery plans. The letter was signed by executives of major American companies such as Intel, Qualcomm, Micron Technology and Advanced Micro Devices. The demand comes at a time when the global shortage of chips is forcing carmakers around the world, including the American companies Ford and General Motors, to reduce or stop production. The management of both American automobiles predicts profit losses in the order of billions. Popular chip consoles, such as Microsoft's Xbox and Sony's Playstation, have even affected chip delivery issues. The missing chips are mostly manufactured in countries such as Taiwan or Korea, which have begun to dominate the industry. The letter sent by the American Semiconductor Manufacturers Association states that the American share of semiconductor production has fallen from 37% in 1990 to the current 12%. "This is largely because the governments of our global competitors offer significant incentives and subsidies to support new semiconductor plants, while the US does not," the group said. Congress approved subsidies for chip manufacturing and semiconductor research last year, but lawmakers must decide how much US funding to provide. U.S. chip makers have called on Biden to provide U.S. funding in the form of grants or tax credits. "Working with Congress, your administration now has a historic opportunity to fund these initiatives to make them a reality," the group wrote. "We believe that bold steps are needed to address the challenges we face. The costs of inaction are high," the group added.
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