A group of U.S. chip companies on Thursday sent a letter to President Joe Biden urging him to provide “substantial funding for incentives for semiconductor manufacturing” as part of his economic recovery and infrastructure plans.
The chief executives of major U.S. firms such as Intel Corp, Qualcomm Inc, Micron Technology Inc and Advanced Micro Devices Inc signed onto the letter.
It comes as a global chip shortage has idled factory lines at Ford Motor Co and General Motors Co, with executives at the automakers predicting billions in lost profit. Tight chip supplies have even made it hard for consumers to buy popular gaming consoles such as Microsoft Corp’s Xbox and Sony Corp’s Playstation.
Congress last year authorized subsidies for chip manufacturing and semiconductor research, but lawmakers must still decide how much funding to provide. The U.S. chip group urged Biden to provide such funding in the form of grants or tax credits.