Semiconductor Chip Shortage is a Global Crisis

During a global Semiconductor shortage that has hindered smartphone and vehicle firms equally, the communications and electronics sector spent 15.1 percent more on federal lobbying in the third quarter than in the same period the previous year, bringing its total for 2021 to $362.1 million. It was the highest rise in lobbying spending of any sector this quarter., often known as Semiconductor microchips, are an essential part of electronic equipment.

Industry demand for the chips has outstripped supply this year, prompting several chipmakers to increase their investments in the United States. President Joe Biden proposed a $50 billion investment in Semiconductor manufacturing and research in March. During the 2020 campaign season, he got $133 million from the communications and electronics industry, making it the fourth-greatest contributor to his campaign.

Samsung said on Tuesday that it would construct a Semiconductor facility in Taylor, Texas, just outside of Austin. The business, one of the world’s top manufacturers of electronic equipment, also spent $2.9 million on federal lobbying this year. In addition, the corporation spent $1.1 million in the third quarter alone, more than any other third quarter in its history. In the communications and electronics sector, the electronics manufacturing and equipment industry spent the most.So far this year, its industry organizations have lobbied for $135.1 million. The lobbying sector spent $46.1 million in the third quarter, up nearly $10 million from the same period last year.

Intel, which announced in March that it would build two new factories in Arizona, is another electronics behemoth moving in. Despite spending only $1 million in the previous quarter, Intel has spent $4.9 million on federal lobbying this year. In addition, Taiwan Semiconductor Manufacturing started building on a factory in Arizona in June and has spent $1.7 million on congressional lobbying activities this year, up from $200,000 last year.