A close-up of the Infineon microcontroller kit XMC 4700 is pictured at an exhibition at German semiconductor manufacturer Infineon’s annual shareholders’ meeting in Munich on 21 February 2019.
Andreas Gebert | Reuters
Top economic and national security officials in the White House have made efforts to help the U.S. auto industry fight a growing shortage of semiconductor chips that has forced global production cuts, a White House spokesman said.
The administration of President Joe Biden held meetings with automakers and suppliers to identify shock points and encouraged companies to work together to address the shortfall, the spokesman said Wednesday.
The White House has also instructed U.S. embassies to determine how foreign countries and companies that manufacture chips can help solve the global shortage and work with international partners and allies to encourage them to address the current shortage.
The effort includes reaching out to Taiwan, home of the main chip maker, Taiwan Semiconductor Manufacturing Co. (TSMC), to find ways to solve the shortage.
In a letter dated February 17, Brian Deese, Biden’s chief economic adviser, thanked Taiwan’s economy minister Wang Mei-hua for helping to resolve the shortage in cooperation with the island’s producers.
Along with Deese, White House National Security Adviser Jake Sullivan is involved in the effort, as are other senior assistants.
U.S. officials held a meeting with Wang this month in which the United States thanked Taiwan for assistance in resolving the car shortage, she said.
The White House spokesman said officials acknowledged that steps needed to be taken to avoid future shortages. Therefore, the government is embarking on a comprehensive review of critical supply chains to identify vulnerabilities and take steps such as encouraging U.S. production in America.
General Motors said on February 9 that the global chip shortage could shave up to $ 20 billion from 2021 profits and the extended production cut at three North American plants. It is also said that the vehicles at two other factories will be partially built and later completed due to the shortage of chips.
The American car manufacturer Ford Motor, no. 2, warned this month that the chip shortage could lead to a 10% to 20% loss in production in the first quarter, which could have a potential impact on operating earnings of $ 1 billion to $ 2.5 billion have. He said he lost production of his top-selling F-150 pickup.
Data firm IHS Markit said on Tuesday that a shortage of automatic discs in the first quarter could affect nearly 1 million units of global light vehicle production, adding that it still expects the bulk of the volume in the rest of 2021 will be recycled.
In a January 19 letter to Deese, first reported by Reuters, the union United Auto Workers and Car Dealers asked the Biden government to consider “urging large silicon wafer foundries to produce wafers in to raise the car. “
The shortage of chips has affected numerous other carmakers, including Toyota Motor, Volkswagen, Stellantis, Renault, Subaru, Nissan Motor, Honda Motor and Mazda Motor.