Benzinga | May 11, 2021 02:23PM EDT

Big Tech Join Intel To Seek Congressional Funding For Chip Production

* Chip buyers, including Apple Inc (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), Alphabet Inc's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google, have joined chip-makers like Intel Corp (NASDAQ: INTC) to create a new lobbying group to seek $50 billion in Congressional funding for domestic semiconductor production boost under the CHIPS for America Act, Bloomberg reports.

* The newly created Semiconductors in America Coalition include Amazon.com Inc's (NASDAQ: AMZN) Amazon Web Services, Cisco Systems Inc (NASDAQ: CSCO), Verizon Communications Inc (NYSE: VZ), and AT&T Inc (NYSE: T), Reuters reports.

* The technology companies sought partial government funding to drive the U.S. production, whose market share declined from 37% in 1990 to 12% at present.

* However, the companies do not want any sector partiality from the government.

* A group of tech companies recently protested to the congressional leaders of both parties and White House officials, against sector preference under the Act and objecting to automakers' plea for production ramp-up of basic chips.

* Intel also offered support for automakers during a chip crisis meeting.

* The Coalition wants the government to refrain from interfering as the industry worked towards the correction of the current supply-demand imbalance.

* The Coalition expects the Act to assist in America's additional capacity building for resilient supply chains to ensure critical technologies in the future.

* Price action: AAPL shares traded lower by 0.90% at $125.72, and INTC shares traded lower by 1.40% at $55.19 on the last check Tuesday.

* Image Courtesy: Wikimedia