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Chip Shortage Is White House's Focus

President Biden’s administration is pressing Congress to provide funding for legislation known as the Chips for America Act. / Evan Vucci. B...

President Biden’s administration is pressing Congress to provide funding for legislation known as the Chips for America Act. / Evan Vucci.
Biden administration hosts gathering expected to include Apple, Ford, GM and Intel as it seeks information on bottlenecks. 

The Biden administration is seeking more information from companies struggling with the global shortage of semiconductors, an effort designed to increase transparency in supply chains and ease bottlenecks. The request for information, which is voluntary for companies, will be made Thursday as the White House hosts a meeting of semiconductor producers and users. 

Administration officials said the objective is to get more information about supply and demand problems and identify ways the government can help. Companies expected to participate include Apple Inc., Ford Motor Co., General Motors Co., Intel Corp., Medtronic, Samsung Electronics Co., Stellantis NV, and Taiwan Semiconductor Manufacturing Co.   

The number of semiconductors in a modern car, from the ignition to the braking system, can exceed a thousand. As the global chip shortage drags on, car makers from General Motors to Tesla find themselves forced to adjust production and rethink the entire supply chain. 

“We welcome today’s meeting and look forward to a productive discussion about the critical role of semiconductors to America’s economy, national security, and global technology leadership, as well as the need to strengthen our country’s chip supply chain,” said John Neuffer, president and chief executive of the Semiconductor Industry Association. 

The administration is also ratcheting up what it calls an early-alert system to mitigate semiconductor plant shutdowns related to the spread of Covid-19’s Delta variant. U.S. diplomats to countries in Southeast Asia including Malaysia and Vietnam will be asked to work with governments to keep factories running while ensuring Covid-19-related worker protections are in place, officials said.   

The chip crisis has squeezed a range of industries, from auto manufacturing to consumer electronics and medical equipment, causing prices to rise for consumers. Short-term solutions have been elusive.

Supply hasn’t kept up with pandemic-induced changes in work and entertainment habits and demand for devices such as tablets. U.S. automakers, which cut chip orders at the onset of the pandemic only to see rising demand from other industries, have been forced to slow or cease assembly lines. 


The price of new and used cars has risen. “Part of our effort here has been to consistently say it’s on industry to come up with the solutions,” a White House official said. “But we do think that our role in collecting data and publishing it can help improve industry’s ability to make the adjustments that might be needed in their planning and production.” 

Supply-chain disruptions have been a focus of the Biden administration, which has convened other meetings with affected sectors such as home construction and health. Officials said transparency will be a significant part of Thursday’s discussion, which are to be led by Commerce Secretary Gina Raimondo and National Economic Council Director Brian Deese.   

The issue of transparency came up during an April meeting Mr. Biden held with auto and tech executives. Automakers sought insight from chip makers on how many semiconductors will be available and on setting production schedules. Chip manufacturers sought a clearer picture of actual demand, hoping to avoid so-called ghost orders, which can be canceled. 

The White House is pressing Congress to provide funding for bipartisan legislation known as the Chips for America Act, designed to encourage domestic semiconductor investment. While the Senate approved $52 billion in June, the House hasn’t taken action on the measure. 

The U.S. has lost ground on semiconductors to Japan, South Korea, Taiwan and China. The Semiconductor Industry Association said the U.S. share of global semiconductor manufacturing fell to 12% in 2020 from 37% in 1990. China and others have provided subsidies to global competitors, making it harder to attract new plant construction in the U.S.