Benzinga | Feb 11, 2021 12:15PM EST

US Chip Companies Seek President Biden's Assistance To Tide Through Semiconductor Crisis: Reuters

* A group of U.S. chip companies, including Intel Corp (NASDAQ: INTC), Qualcomm Inc (NASDAQ: QCOM), Micron Technology Inc (NASDAQ: MU), and Advanced Micro Devices Inc (NASDAQ: AMD), sent a letter to President Joe Biden requesting for grants or tax credits as part of his economic recovery and infrastructure plans, Reuters reports.

* The global crisis of chips has hampered production at Ford Motor Co (NYSE: F) and General Motors Co (NYSE: GM), which could translate into an estimated loss in billions. The crisis has made it difficult it purchase popular gaming consoles like Microsoft Corp's (NASDAQ: MSFT) Xbox and Sony Corp's (NYSE: SNE) PlayStation.

* The crisis was triggered by Donald Trump's trade war with China, including the embargo on China's biggest foundry Semiconductor Manufacturing International (SMIC).

* As a result, the chip sourcing shifted to Taiwan and Korea to companies like Taiwan Semiconductor Mfg Co Ltd (NYSE: TSM) and Samsung Electronics Co Ltd (OTC: SSNLF).

* However, the newer destinations have been unable to fulfill the burgeoning demand for chips, which was further fueled by the pandemic due to higher remote work and cloud requirements.

* Recently, U.S. Senator Charles E. Schumer assured federal incentives for Samsung's factory in New York to drive their local chip production versus China. Apple Inc's (NASDAQ: APPL) major chip supplier TSM already disclosed plans for a $12 billion chip plant in Arizona to come online by 2024.