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A SIA (Semiconductor Industry Association, or Semiconductor Industry Association), a group of manufacturers that includes Qualcomm and Intel, today sent a letter to President Joe Biden in which they ask for investments in the production of components in the USA. The companies' request is that the president include the sector in the country's economic and structural recovery plan.

AMD, Micron and other companies also sign the letter

In addition to the two companies, the request is also signed by the presidents of other very important companies in the market, AMD and Micron Technology. In the letter, the executives point out that semiconductor production in the United States fell from 37% in 1990 to 12% today. In the document, the Association states that production difficulties during the pandemic has a high impact on the country's economy.

Due to a lack of semiconductors, automotive companies such as Ford and General Motors have lost billions by keeping their production lines idle. Companies fear that the same will happen to the chip sector, which could also affect the gaming and smartphone markets. In addition, similar measures have been taken in certain European countries, which have begun investing in processor production.

Finally, the group calls on the US president to consider the “historic opportunity” to change this situation. “We believe that bold action is needed to address the current situation,” the association’s letter concludes. “The costs of inaction are high.”

Times of uncertainty

It is no surprise that US chip companies, led by Qualcomm and Intel, are asking Joe Biden for more investment. As the pandemic progresses, Qualcomm already predicted chip shortage for early this year. And Intel may have a hard time in the not-too-distant future as it transitions away from Macs for processors da Apple.

Last year, the US Congress had already authorized subsidies for chip manufacturing and semiconductor production, but did not determine the form or amount. In the letter, the companies requested help with financing and tax cuts.

Apple and TSMC

Currently, global production in the chip and semiconductor industry is dominated by East Asia. TSMC (Taiwan Semiconductor Manufacturing Company) has been investing more and more, and is preparing to manufacture 3nm chips next year, who already have a client, Apple. Speaking of the Cupertino company, TSMC has been working with the Apple producing the A-line processors for iPhones and iPads, and now the new M1 chips for Macs and MacBooks. Additionally, TSMC has a new the partnership with the Cupertino company to create future augmented reality glasses.

Countries like Taiwan and South Korea provide subsidies for the industry and attract investors, a practice that, as the group itself complains, is not common in Uncle Sam's land.

Possible executive order?

Some tweets (without any confirmation) claim that Biden will sign an executive order to guarantee investments. Let's wait for more news on the subject.

Through which channels you reach those people, classic and out of the box. Reuters e 9to5Mac

Image: Gorodenkoff (Shutterstock)