Stock Groups

White House seeks to address semiconductor chips crisis harming automakers By Reuters

[ad_1]

© Reuters. FILEPHOTO: President Joe Biden is holding a chip that contains a semiconductor, as he discusses the executive order aimed at ending the global shortage. This was taken in Washington’s State Dining Room, White House, U.S.A, on February 24, 2021.

By David Shepardson

WASHINGTON (Reuters) – The White House will discuss ways to overcome a semiconductor chip supply crisis that is cutting auto production around the world in a new round of meetings with major companies on Thursday.

Commerce Secretary Gina Raimondo and White House National Economic Council director will host companies including Detroit’s Big Three automakers General Motors (NYSE:), Ford Motor (NYSE:) and Stellantis as well as Apple (NASDAQ:), Daimler AG (DE:), GlobalFoundries, Micron (NASDAQ:), Microsoft (NASDAQ:), Samsung (KS:), TSMC and others including Intel Corp (NASDAQ:) Chief Executive Pat Gelsinger.

To get more information from the industry on chip problems and possible solutions, the White House will issue a voluntary request to information next week.

According to a Biden administration official, the administration wants comments by Wednesday in order to obtain details about supply and demand, inventory ordering, customer segments, and other information.

Official said that there are other tools available to survey businesses and they need information. However, the Biden administration would not hesitate to seek out voluntary assistance.

A second official said that the Biden administration plans to create a voluntary, “early alert” system to monitor the impact of COVID-19-related shutdowns on microelectronics manufacturing worldwide. This will include gathering information from embassies and impacted companies.

To ensure that key facilities such as semiconductor production facilities are kept running, the administration is aiming to maximize its technical and material support to them.

In Vietnam and Malaysia, rising COVID-19 levels have caused a slowdown in production. The result is a global shortage.

Taiwan’s economy minister said last month it is doing everything it could to combat the shortage of semiconductors worldwide.

As Taiwan tries to assure the United States (its most significant international supporter, arms supplier), that they are doing everything possible, this issue is now a diplomatic hot potato. This comes at a time Taiwan is under increasing military pressure from China who views Taiwan as their own.

According to data company IHS Markit, global production of light vehicles will fall by five million due to semiconductor shortages. They also warned that delayed packaging and testing would cause delays in the final stages of chip manufacturing. Some carmakers believe the crisis could last into 2023 or late 2022.

Automakers from GM to Toyota Motor (NYSE:) Corp have slashed output and sales forecasts due to scarce chip supplies, made worse by a COVID-19 resurgence in key Asian semiconductor production hubs.

GM cut most of its North American production earlier in the month.

Other companies attending Thursday including AMD, Applied Materials (NASDAQ:), Medtronic (NYSE:) and Siemens.

To increase U.S. semiconductor chip production, the White House is asking Congress for $52 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. Instead, they are determined by marketmakers. As such, the prices might not reflect market conditions and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]