Tech Giants, Car Makers Set For White House Meeting Over Chip Shortage

The White House is to gather together all the big players in the tech, chip, and car sectors today, in order to discuss the ongoing chip shortage.

Reuters, citing people familiar with the matter, reported that Intel CEO Pat Gelsinger plans to attend the virtual White House meeting on Thursday.

He will reportedly be joined by tech firms such as Apple, Microsoft, and Samsung; as well as major names in the car industry including BMW, GM, Ford, and Stellantis.

White House Meeting

Other firms expected to attend include the world’s largest contract chip maker TSMC and Micron Technology.

The meeting will be hosted by Secretary of Commerce Gina Raimondo and National Economic Council Director Brian Deese, the Commerce Department has previously indicated.

The meeting will discuss the impact of the Delta variant of Covid-19 on chip supplies, and how to improve the co-ordination between chip makers and consumers.

It will also reportedly discuss engagements with allied nations, and the Biden administration is expected to tell the attendees that the government needs their help to alleviate semiconductor bottlenecks.

This will be the third such meeting that Raimondo (who is leading White House efforts) is hosting. The first meeting took place back in February this year.

That same month US President Joe Biden signed an executive order to review supply chains for r four critical products, namely semiconductor chips; large-capacity batteries for electric vehicles; rare earth minerals; and pharmaceuticals.

Chip funding

Then in May bipartisan legislation (part of a broader China competition bill) was revealed to approve $52 billion to bolster American semiconductor chip production and research over five years.

That $52 billion funding bill was approved by the US Senate in June, but reportedly remains stalled in the House.

Meanwhile the semiconductor industry is said to be seeking a separate measure that would provide tax credits to companies that invest in semiconductor fabs in the US.

The White House has not said whether it supports the bill.

Chip shortage

In July Intel boss Gelsinger said that while the chip ecosystem is recovering, the supply chain is stilled stressed, and chip shortages are expected to last until 2023.

Forrester Research also warned earlier this year that it expects chip supply issues to extend through next year and into 2023.

However long it lasts, it is fair to say the chip shortage continues to hurt multiple industries including car and electronic makers.