White House meeting is billed as the "CEO Summit on
Semiconductor and Supply Chain Resilience" and will include
White House national security adviser Jake Sullivan and National
Economic Council Director Brian Deese.
As of midday Friday, 19 major companies had agreed to send
executives, including General Motors Chief Executive Mary Barra,
Ford Motor Chief Executive Jim Farley and Chrysler-parent
Stellantis NV CEO Carlos Tavares.
Deese said in a statement the "summit reflects the urgent need
to strengthen critical supply chains."
Commerce Secretary Gina Raimondo will also take part, as well as
executives from GlobalFoundries, PACCAR, NXP and Taiwan
Semiconductor Manufacturing Company, AT&T, Samsung,
Google-parent Alphabet, Dell Technologies, Intel Corp,
Medtronic, Northrop Grumman, HP, Cummins and Micron.
A U.S. auto industry group this week urged the government to
help and warned that a global semiconductor shortage could
result in 1.28 million fewer vehicles built this year and
disrupt production for another six months.
Over the weekend, GM canceled more truck production shifts at
two U.S. plants.
"Trying to address supply chains on a crisis-by-crisis basis
creates critical national security vulnerabilities," Sullivan
said in a statement.
Automakers have been hit particularly hard by the global chip
shortage after many canceled orders when auto plants were idled
during the coronavirus pandemic.
When they were ready to recommence production, they found that
chipmakers were busy fulfilling orders for the consumer
electronics industry which has seen demand for premium devices -
both for work and leisure - boom as people spent more time at
Broadband internet, cellphone and cable TV companies also face
delays in receiving "network switches, routers, and servers...
Shortages in semiconductors and the associated delays will
result in hundreds of millions of dollars in impact to the
broadband and cable television industry this year," an industry
group said this week.
President Joe Biden wants at least $100 billion to boost U.S.
semiconductor production and fund investments to support
production of critical goods, but officials said this funding
will not address short-term chip needs.
Later this week the Senate Commerce Committee will hold its
first hearing on a bipartisan measure to bolster technology
research and development efforts in a bid to address Chinese
(Reporting by David Shepardson, Editing by Rosalba O'Brien)
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