Sunday, May 9, 2021
Home Business Commerce Department presses Taiwan to supply more chips to U.S. automakers

Commerce Department presses Taiwan to supply more chips to U.S. automakers

Commerce Secretary Gina Raimondo testifies earlier than the Senate Appropriations Committee throughout a listening to within the Dirksen Senate Office Building on Capitol Hill in Washington, D.C., April 20, 2021.

Chip Somodevilla | Pool | Reuters

The U.S. Commerce Department is urgent Taiwan Semiconductor Manufacturing Co and different Taiwanese companies to prioritize the wants of U.S. automakers to ease chip shortages within the close to time period, Commerce Secretary Gina Raimondo stated on Tuesday.

Raimondo informed a Council of the Americas occasion that longer-term, elevated funding was wanted to produce more semiconductors within the United States and that different crucial supply chains wanted re-shoring, together with to allied nations.

“We’re working hard to see if we can get the Taiwanese and TSMC, which is a big company there, to, you know, prioritize the needs of our auto companies since there’s so many American jobs on the line,” Raimondo stated in response to a query from a General Motors government.

“As I said, there’s not a day goes by that we don’t push on that,” she stated, including the medium- and long-term answer could be “simply making more chips in America.”

TSMC stated that addressing the scarcity remained its prime precedence.

“TSMC has been working with all parties to alleviate the automotive chip supply shortage, we understand it is a shared concern of the worldwide automotive industry,” it stated in a press release to Reuters on Wednesday.

TSMC CEO C.C. Wei stated final month the corporate had labored with its clients since January to reallocate more capability to assist the auto business, however the scarcity had worsened due to a snowstorm in Texas and a fab manufacturing disruption in Japan.

Wei anticipated the chip scarcity for its auto purchasers to be drastically diminished from the following quarter.

The Commerce Department is planning a high-level assembly with automakers set to happen subsequent week on the chip scarcity situation, stated officers briefed on the matter. A Commerce Department spokesman declined to remark.

United Auto Workers Legislative Director Josh Nassar stated in written testimony for a U.S. House listening to on Wednesday that the chips scarcity has resulted within the layoffs of “tens of thousands of workers … Clearly, we need to bolster domestic production of automotive-quality semiconductors.”

Last week, Ford Motor warned the chips scarcity could slash second-quarter manufacturing by half, value it
about $2.5 billion and about 1.1 million items of misplaced manufacturing in 2021.

GM stated on Friday it might prolong manufacturing halts at a number of North American factories due to the scarcity.

On April 12, Biden convened semiconductor and auto business executives to focus on options to the chip disaster. He backs $50 billion to assist U.S. chip manufacturing and analysis.

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