2/2 © Reuters. Intel CEO Pat Gelsinger holds a wafer as he speaks onstage at Intel’s Investor Day, in San Francisco, California, US, Feb. 17, 2022. Intel Corporation/Handout via REUTERS 2/2

By David Shepardson

WASHINGTON (Reuters) -The chief executives of Intel (NASDAQ:) and Micron will testify before the US Senate Committee on Commerce on March 23, as industry and lawmakers argue for $52 billion in US subsidies to manufacture semiconductor chips.

The chief executive of truck maker Paccar (NASDAQ:) Inc will also testify at the hearing, which will look at vulnerabilities in semiconductor supply chains and the industry’s connection to US competitiveness.

Senate Commerce Committee Chair Maria Cantwell announced the hearing Wednesday at https://www.commerce.senate.gov/2022/3/developing-next-generation-technology-for-innovation. Reuters previously announced the planned hearing.

Two decades ago, the United States produced nearly 40% of all chips, and today it accounts for just 12% of global production, Commerce Secretary Gina Raimondo said.

Last week, President Joe Biden met with chipmaker executives, including Samsung Electronics (OTC:) Co Ltd, Micron Technology Inc (NASDAQ:) and other companies as part of an effort to urge Congress to grant subsidies to chipmakers. to facilitate the semiconductor industry. crack.

The Senate in June and the House in February approved the $52 billion in grants in separate bills. “Bring it to my desk as soon as possible,” Biden said last week.

The accounts take different approaches to address US competitiveness with China on a wide range of topics, as well as trade and some climate provisions.

An ongoing industry-wide shortage of chips has disrupted production in the automotive and electronics industries, forcing some companies to scale back.

Cantwell said it was urgent to take action, noting that the chip shortage cost the global auto industry an estimated $210 billion in revenues and a production loss of 7.7 million cars by 2021.

“It’s 30% to 50% cheaper to build a semiconductor foundry in Asia than in the United States, mainly because of foreign government investment… We can’t wait,” she said.

Intel said it welcomed the opportunity to “advance the importance of investing in US leadership in semiconductors.”

In January, Intel said it would invest up to $100 billion to build potentially the world’s largest chip manufacturing complex in Ohio.

Micron said in October that it plans to spend $150 billion globally over the next decade on manufacturing advanced memory chips and on research and development. Micron said funding from Congress “would open the door to new investment in the industry.”

SEMI, an industry association, said in a letter https://www.semi.org/sites/semi.org/files/2022-03/SEMI_House_FABS_Act_Support_Letter_Mar_16.pdf to Congress that funding is “vital to provide fundamental incentive investment in domestic design and manufacturing facilities for semiconductors and semiconductor devices.”

Critics like Senator Bernie Sanders question why Congress would give subsidies to a large profitable industry.

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This post Intel, Micron CEOs To Testify At US Senate Hearing On Making Chips was original published at “https://www.investing.com/news/economy/intel-micron-ceos-to-testify-at-us-senate-hearing-on-chip-making-2786280”

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