U.S. technology providers have formed an alliance that calls on Congress to authorize a $50 billion federal budget for research and manufacturing investments within the semiconductor industry.
The Semiconductors in America Coalition said Tuesday it aims to drive the implementation of federal policies that support chip market growth and urged lawmakers to approve full funding of the CHIPS for America Act.
Amazon Web Services, AT&T (NYSE: T), Cisco Systems (Nasdaq: CSCO), Hewlett Packard Enterprise (NYSE: HPE), Microsoft (Nasdaq: MSFT) and Verizon (NYSE: VZ) are among the companies that formed SIAC.
The Semiconductor Industry Association supported the formation of the new coalition.
“Semiconductors are the brains of the systems and technologies that enable America’s economic growth, national security, digital infrastructure, and global technology leadership,” said SIA President and CEO John Neuffer.
Neuffer added that industry intends to work with the Biden administration and Congress to promote federal initiatives proposed under the CHIPS for America Act.
A joint study by SIA and Boston Consulting Group found that U.S. share of the global semiconductor production capacity dropped from 37 percent in 1990 to 12 percent last year.
Authors of the report said the federal government should incentivize chip manufacturing efforts to increase the competitiveness of domestic manufacturers.