US tech giants are currently in search of a solution to the problem of rising costs of their products. They have come to a conclusion that if the US government does not help, this issue will remain unresolved.
The largest semiconductor manufacturers in the US — Intel, Nvidia, and Qualcomm — have joined the companies that actively use chips in their technologies. They are Apple, Google, Amazon Web Services, Microsoft, Verizon, and AT&T. The coalition is now demanding $50 billion in subsidies from the government. These funds will be used to expand semiconductor manufacturing and research.
According to these companies, amid the shortage of chips, the government funding could help the US to create a resilient semiconductor supply chain in the long run. The chipmakers have sent a letter to Congress but have not received a reply yet.
The shortage of semiconductor chips became a serious problem. It arose from a sharp jump in demand for electronics during the pandemic. People across the globe started actively purchasing laptops, smartphones, and household appliances so that they can live and work from home during a lockdown. The shortage has also affected US car manufacturers. They have not joined the coalition yet but asked the US government to support semiconductor manufacturers financially.
