US President Joe Biden has met with executives from key companies to discuss the global chip shortage that has hit carmakers and has urged Intel Corp. to announce that it plans to have chips in its factories in the next six to nine months. to make for car factories.
Speaking at Monday’s rally, Biden said he had bipartisan support for legislation to fund the semiconductor industry. He previously announced plans to invest $ 50 billion in semiconductor manufacturing and research as part of his commitment to rebuild US manufacturing under a $ 2 trillion infrastructure plan.
The global shortage of chips stems from a confluence of factors as car makers, who shut down factories during last year’s COVID-19 pandemic, battle the expanding consumer electronics industry for chip supplies. The latter industry has boomed as people spend more time at home.
Biden and his top advisers consider the shortage of semiconductors a “top and immediate priority,” the White House said after the meeting.
Intel Chief Executive Pat Gelsinger, who virtually attended the meeting, told Reuters news agency that the company wanted to start producing chips at its factories within six to nine months to address the shortage that has shut down the assembly line in some US auto factories.
The supply crisis could lead to a potential 1.3 million unit shortage in US car and light truck production this year.
“We hope some of these things can be alleviated, as it doesn’t require three or four years of factory build-up, but maybe six months of new products being certified under some of our existing processes,” Gelsinger said. “We’ve already started those deals with some of the major component suppliers.”
Increases
Intel last month announced plans to massively scale up chip production for outsiders as it builds new factories in the US and Europe. Discussions with automotive suppliers announced Monday represent an acceleration of those plans.
The White House meeting included executives from 19 leading companies, including General Motors Chief Executive Mary Barra, Ford Motor CEO Jim Farley and Chrysler mother Stellantis NV CEO Carlos Tavares. White House National Security Advisor Jake Sullivan, National Economic Council Director Brian Deese and Commerce Secretary Gina Raimondo also participated.
“Today I received a letter from 23 senators, bipartisans and 42 House members, Republican and Democrat, who support the chips for America program,” Biden said at the start of the session.
Intel offered hope to the auto industry, saying it could start making chips in six to nine months [File: Adam Glanzman/Bloomberg]
Executives from companies such as GlobalFoundries, Taiwan Semiconductor Manufacturing Co, AT&T, Samsung Electronics Co and Google parent company Alphabet Inc were also in attendance.
Participants stressed the importance of greater transparency in the semiconductor supply chain to help reduce current shortages and improve demand forecasting to help avoid future challenges, the White House said in a statement.
They also discussed “the importance of encouraging additional semiconductor manufacturing capacity in the United States to ensure that we never run into shortages again,” it added.
Participants discussed short- and long-term approaches to addressing the chip shortage, but there was unlikely to be an immediate decision or announcement of the meeting, White House press secretary Jen Psaki told reporters.
Broadband Internet, cell phone and cable TV companies are also experiencing delays in receiving “network switches, routers and servers”, according to an industry group.
Special treatment?
Many of the policymakers who support additional semiconductor funding want the measure to be a standalone competitiveness law targeting China, not part of Biden’s infrastructure package as it is today. The China bill has some bipartisan support and could have a faster path through Congress.
But exactly how semiconductor funding should be spent and allocated is a source of debate among automakers and other chip users, as well as the semiconductor companies themselves.
Car makers are pushing for some of the money to be earmarked for automotive-grade chips, warning of production shortages if their industry is not a priority.
Still, manufacturers of other electronic devices hit by the chip shortage, such as computers and cell phones, have objected to the automakers’ demands, fearing their industry will suffer. The debate also played a role at the White House meeting.
The White House has not taken a public position on the matter, but has privately indicated to semiconductor industry leaders that it would not support special treatment for one industry, Bloomberg news agency reported, citing people familiar with the matter.
Later this week, the Senate Trade Commission will hold its first hearing on a two-pronged measure to strengthen technology research and development efforts in an effort to tackle Chinese competition.
“Trying to address crisis-by-crisis supply chains creates critical national security vulnerabilities,” national security adviser Sullivan said in a statement.