White House, US and Taiwanese business leaders to deliberate global microchip shortage
US economic and national security officials will meet with semiconductor and auto industry representatives today regarding the ongoing effect of the global computer chip shortages.
COVID-19 supply chain disruption hit semiconductor-dependent businesses hard, with manufacturers unable to source chips that power features from advanced fuel management systems in cars to smartphones. The shortage has forced companies like GM and Ford to temporarily shut factories.
The summit follows President Joe Biden’s executive order that launched a 100-day review of supply chains for critical products, especially tech components. US companies like Alphabet, Intel and GM, as well as foreign manufacturing representatives from Taiwan Semiconductor Manufacturing Company (TSMC), will attend the summit.
Biden’s executive order fulfils a key campaign promise and comes as the shortage exposes a critical weakness in US high-tech manufacturing. At the summit, expect Biden to push for greater sourcing from chip foundries abroad like TSMC while the US builds its capabilities, both to aid manufacturers and avoid further worker layoffs amid the economic recovery. TSMC is one of the few global manufacturers producing chips for other businesses to use in their products. As Chinese chip foundries are currently blacklisted, TSMC will be crucial to preventing future shortages as US chip manufacturing develops.
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