Biden’s Top Economic, Security Aides Set Summit on Chip Shortage
(Bloomberg) -- President Joe Biden’s top national security and economic advisers plan to meet April 12 with semiconductor and auto companies to discuss the global shortage of microprocessors, according to people familiar with the matter.
National Security Adviser Jake Sullivan and National Economic Council director Brian Deese will discuss the impacts of the shortage and a path forward with industry leaders, an administration official said.
The official added that the White House is also engaged with Congress and allies abroad on the issue.
Companies invited to the meeting include automakers and semiconductor manufacturers, as well as technology and medical devices firms, according to one of the people. Among them are Samsung Electronics Co., General Motors Co. and GlobalFoundries Inc., the people said.
The chips shortage is due to increased demand for microprocessors in the pandemic, as consumers drove up sales of laptops, home networking gear and appliances while shifting to remote work and schooling. Global production of chips is concentrated with mostly two manufacturers, Taiwan Semiconductor Manufacturing Co. and Samsung.
Auto companies have been forced to idle production in plants around North America due to backlogs in the supply of chips.
The Biden administration is examining incentives for domestic production of semiconductors and is reviewing supply chain vulnerabilities. Intel Corp. last month announced plans to invest $20 billion in two new fabrication plants in Arizona, while Samsung and TSMC have also committed to building more capacity in the U.S.
Lawmakers are pushing for funding of grants in a broader effort to compete against China that will move through Congress this spring. Separately, chips companies have lobbied for a refundable tax credit, though that won’t be included in the measure.
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