The White House is planning a meeting with several car and chip manufacturers to discuss the chip shortage, which mainly affects the automotive sector.
In addition to companies from the car and chip sector, companies from the technology and medical technology sector have also been invited, writes the news agency Bloomberg based on insiders. General Motors, Samsung Electronics and chip company GlobalFoundries, among others, have been invited. At the summit, due in two weeks, National Security Adviser, Jake Sullivan, and President Joe Biden’s Economic Adviser Brian Deese will discuss the impact of the global chip shortage. They also want to discuss with business leaders how the world can get out of this crisis.
The chip shortage arose because during the pandemic there was a lot more demand for things like laptops, computers and mobile phones for people who work from home. At the same time, people are also looking for entertainment, which means that game consoles are eagerly sought after. The car industry is hit hard because it scaled down production and cut chip orders at the time of the first corona dip. When the market picked up again, chip manufacturers had now received so many other orders that long delivery times had arisen for the chips from the car manufacturers.
The $ 2 trillion infrastructure plan recently presented by Biden also includes $ 50 billion for the US chip industry. Among other things, that money should be used to build production capacity in the United States. Taiwanese chip manufacturer TSMC, among others, has already announced its intention to build a chip factory in the US and will invest no less than € 85 billion in expanding its production capacity in the coming years. Chipmaker Intel also wants to build and expand factories in the US.
This weekend we will go into more detail on this website about the chip shortage and what consequences this has for the car industry. So keep an eye on the site.