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The chief executives of Intel and Micron will appear before the U.S. Senate Commerce Committee on Wednesday to push for legislation to boost the U.S. semiconductor industry.

In February of this year, the U.S. House of Representatives narrowly passed a bill aimed at promoting U.S. semiconductor manufacturing on a large scale, including appropriating $52 billion for semiconductor production subsidies and $45 billion for the construction of related technology supply chains.

"The federal government urgently needs to incentivize more private sector investment in the U.S. to enable a resilient and innovative semiconductor ecosystem," Intel's CEO will tell the committee, according to an undisclosed testimony seen by the media. "

Micron's chief executive said in his written testimony that approving $52 billion for chips "will initiate investments in workforce development, R&D, innovation and manufacturing expansion in the near term."

Since the outbreak of the new crown epidemic, the continuous global shortage of chips has disrupted production in the automotive and electronics industries. Companies in related fields have been forced to reduce production and increase prices, but they still cannot withstand such a long wave of chip shortages.

Requires close government coordination

The U.S. Commerce Secretary met with senators on Tuesday, urging them to act quickly on the chip issue. "The situation in the United States is very urgent. We have to reduce our dependence on other countries for chips, and the way to do that is to produce more chips in the United States," she said.

Micron's CEO will also call on Congress to pass "refundable investment tax credits ... which are intended to create a long-term incentive to revitalize domestic manufacturing in the semiconductor industry."

Micron has announced plans to invest more than $150 billion globally over the next 10 years in cutting-edge memory manufacturing and research and development, and is considering a new fab in the United States.

Building these new fabs in the U.S. "requires close coordination with federal and state policies to ensure the economic viability of our operations," she added in her testimony, "We expect that to make a mega-fab feasible, A lot of federal funding will be required."

Intel also recently announced plans to invest $20 billion in two new mega-fabs in Ohio. If sufficient funds are available, perhaps eight can be built. In his testimony, he said $100 billion would be provided "assuming support from the chip bill."

The chief executive of U.S. tech firm Lam Research will tell lawmakers that the new U.S. fab "will be reliant on semiconductor manufacturing equipment and materials." He believes that the Commerce Department's grant program should be able to "provide incentives along the entire value chain" and support an "ecosystem-wide approach."