The White House will gather top executives from nearly 20 major corporations on Monday to discuss a global semiconductor shortage that has disrupted manufacturing in the U.S. auto and technology sectors.
Senior White House officials will meet with executives from nearly 20 major corporations in the United States on Monday to discuss a global semiconductor shortage that is causing turmoil in automotive and tech companies.
The White House meeting, known as the CEO Summit on Semiconductor and Supply Chain Resilience, includes White House National Security Advisor Jake Sullivan and National Economic Council Director Brian Deese.
By Friday noon, 19 large companies had agreed to send executives, including Mary Barra, Chief Executive of General Motors, Jim Farley, Chief Executive of Ford Motor, and Carlos Tavares, CEO of Chrysler parent company Stellantis NV.
Deese said in a statement that the “summit reflects an urgent need to strengthen critical supply chains”.
Trade Minister Gina Raimondo will attend, along with executives from GlobalFoundries, PACCAR, NXP Semiconductors, Taiwanese semiconductor manufacturers, AT&T, Samsung, the Google parent alphabet, Dell Technologies, Intel Corp., Medtronic, Northrop Grumman, HP, Cummins and Micron Technologie.
A US auto industry group this week called on the government to help, warning that a global semiconductor shortage could result in 1.28 million fewer vehicles being built this year and production being suspended for another six months.
Over the weekend, GM canceled additional truck production shifts at two US plants.
“Attempting to address supply chains in crisis leads to critical national security vulnerabilities,” Sullivan said in a statement.
Automakers have been particularly hard hit by the global chip shortage after many canceled orders when auto plants were shut down during the coronavirus pandemic.
When they were ready to resume production, they found that the chipmakers were busy filling orders for the consumer electronics industry. Demand for premium devices – both for work and leisure – boomed as people spent more time at home.
Broadband Internet, cell phone and cable television companies also experience delays in receiving “network switches, routers and servers”. The semiconductor shortage and associated delays will impact the broadband and cable television industries by hundreds of millions of dollars this year. “Said an industry group this week.
President Joe Biden wants at least $ 100 billion to boost US semiconductor production and fund investments to support the production of critical goods. According to official information, however, this financing will not cover short-term chip requirements.
Later this week, the Senate Committee on Commerce, Science and Transport will hold its first hearing on a bipartisan move to step up technology research and development efforts and address Chinese competition.