HomeBusinessCommerce Dept. presses Taiwan to supply more chips to U.S. automakers

Commerce Dept. 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 Workplace Constructing on Capitol Hill in Washington, D.C., April 20, 2021.

Chip Somodevilla | Pool | Reuters

The U.S. Commerce Division 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 mentioned on Tuesday.

Raimondo informed a Council of the Americas occasion that longer-term, elevated funding was wanted to provide extra semiconductors in the USA and that different important provide chains wanted re-shoring, together with to allied nations.

“We’re working arduous to see if we are able to get the Taiwanese and TSMC, which is a giant firm there, to, you realize, prioritize the wants of our auto firms since there’s so many American jobs on the road,” Raimondo mentioned in response to a query from a General Motors govt.

“As I mentioned, there’s not a day goes by that we do not push on that,” she mentioned, including the medium- and long-term resolution can be “merely making extra chips in America.”

TSMC mentioned that addressing the scarcity remained its prime precedence.

“TSMC has been working with all events to alleviate the automotive chip provide scarcity, we perceive it’s a shared concern of the worldwide automotive business,” it mentioned in a press release to Reuters on Wednesday.

TSMC CEO C.C. Wei mentioned final month the corporate had labored with its clients since January to reallocate extra capability to help the auto business, however the scarcity had worsened on account of a snowstorm in Texas and a fab manufacturing disruption in Japan.

Wei anticipated the chip scarcity for its auto shoppers to be vastly decreased from the following quarter.

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

United Auto Staff Legislative Director Josh Nassar mentioned in written testimony for a U.S. Home listening to on Wednesday that the chips scarcity has resulted within the layoffs of “tens of hundreds of employees … Clearly, we have to bolster home manufacturing of automotive-quality semiconductors.”

Final 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 mentioned on Friday it could lengthen manufacturing halts at a number of North American factories due to the scarcity.

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

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