Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Tech giants join call for funding U.S. chip production

Stock MarketsMay 11, 2021 12:37PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
4/4 © Reuters. FILE PHOTO: Silhouette of a mobile user seen next to a screen projection of the Apple logo in this picture illustration taken March 28, 2018. REUTERS/Dado Ruvic/Illustration 2/4

By Stephen Nellis

(Reuters) - Some of the world's biggest chip buyers, including Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) Inc's Google, are joining top chip-makers such as Intel Corp (NASDAQ:INTC) to create a new lobbying group to press for government chip manufacturing subsidies.

The newly formed Semiconductors in America Coalition, which also includes Amazon.com (NASDAQ:AMZN)'s Amazon Web Services, said Tuesday it has asked U.S. lawmakers to provide funding for the CHIPS for America Act, for which President Joe Biden has asked Congress to provide $50 billion.

"Robust funding of the CHIPS Act would help America build the additional capacity necessary 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 in both houses of the U.S. Congress.

A global chip shortage has hit automakers hard, with Ford Motor (NYSE:F) Co saying it could halve second-quarter production.

Automotive industry groups have pressed the Biden administration to secure chip supply for car factories. But Reuters last week reported administration officials were reluctant to use a national security law to redirect computer chips to automakers because doing so could hurt other industries.

The new coalition includes some of those other chip-consuming industries, with members such as AT&T (NYSE:T), Cisco Systems (NASDAQ:CSCO), General Electric (NYSE:GE), Hewlett Packard Enterprise (NYSE:HPE) and Verizon Communications Inc (NYSE:VZ). It cautioned against government actions to favor a single industry such as automakers.

"Government should refrain from intervening as industry works to correct the current supply-demand imbalance causing the shortage," the group said.

Tech companies such as Apple are also being hit by the chip shortage, but far less severely than automakers.

The iPhone maker said last month it will lose $3 billion to $4 billion in sales in the current quarter ending in June because of the chip shortage, but that equates to just a few percent of the $72.9 billion in sales analyst expect for Apple's fiscal third quarter, according to Refinitiv revenue estimates.

Tech giants join call for funding U.S. chip production
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Vinsent Timor ayau
Vinsent Timor ayau May 11, 2021 9:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yoi speaking English di Indonesia
sandra burritt
sandra burritt May 11, 2021 7:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
too bad. They want to run social media. Let them figure it out.
king michael
king michael May 11, 2021 6:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
With $22 trillion GDP and over $27 trillion of national debt which also grows about $4 trillion a year. FED has run out of gas and has been talking to rollback the printing $ policy. The government has been keep tight the policy preventing US tech companies to sell very high profit margin products to other countries. All those are pushing this country to bankruptcy soon. Market will drop to near zero and an bankruptcy wave is on the way in tech sectors.
Joe Wiggs
Joe Wiggs May 11, 2021 5:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oh, now they want free taxpayer money for stock buyback while they continue to outsource. No deal.
Carlo Antonini
Carlo Antonini May 11, 2021 5:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The greedy fools outsource like crazy to exploit cheap overseas labor and now they go crying to government for a handout when their outsourcing backfires.
Atlantic Coast Money
Atlantic Coast Money May 11, 2021 5:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Spot on.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email