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The call to subsidize U.S. chip manufacturing efforts with $50 billion in government funding has gained the backing of a new coalition of semiconductor companies, IT vendors and other companies that are in close orbit of chipmakers like Intel, AMD and Samsung.

The Semiconductors in America Coalition on Tuesday called for U.S. congressional leaders to appropriate $50 billion in incentives and research initiatives for domestic semiconductor manufacturing as part of the CHIPS for America Act, which was approved earlier this year. The new group builds on calls by the Semiconductor Industry Association and President Joe Biden to fund the measure with $50 billion.

The coalition includes several major IT and telecom vendors that rely on silicon for their products and services: Amazon Web Services, Apple, AT&T, Cisco, Google, Hewlett Packard Enterprise, Microsoft and Verizon. The semiconductor members include AMD, Arm, Broadcom, Intel, Nvidia, Qualcomm, Samsung, SK Hynix, Western Digital, Xilinx and several others. Additional members include Avnet, Arrow Electronics, General Electric and Honeywell. 

In a Tuesday letter to congressional leaders Nancy Pelosi (D-Calif.), Chuck Schumer (D-N.Y.), Mitch McConnell (R-Ky.) and Kevin McCarthy (R-Calif.), the Semiconductors in America Coalition said U.S. technology leadership is at question as foreign governments provide major subsidies to semiconductor research and manufacturing efforts overseas. 

The result, the group said, is that it is “20-40 [percent] more expensive to build and operate a fab in the U.S. compared to overseas.” The U.S. has also fallen from its peak of global semiconductor manufacturing share of 37 percent in 1990 to 12 percent today, the group added.

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