U.S. Commerce Dept. pressing Taiwan to supply more chips to U.S. automakers

The U.S. Commerce Department is pressing Taiwan Semiconductor Manufacturing Co Ltd and other Taiwanese firms to prioritize the needs of U.S. automakers to ease chip shortages in the near term, Commerce Secretary Gina Raimondo said on Tuesday.

Reuters | Updated: 05-05-2021 05:21 IST | Created: 05-05-2021 05:21 IST
U.S. Commerce Dept. pressing Taiwan to supply more chips to U.S. automakers

The U.S. Commerce Department is pressing Taiwan Semiconductor Manufacturing Co Ltd and other Taiwanese firms to prioritize the needs of U.S. automakers to ease chip shortages in the near term, Commerce Secretary Gina Raimondo said on Tuesday. Raimondo told a Council of the Americas event that longer term, increased investment was needed to produce more semi-conductors in the United States and that other critical supply chains needed re-shoring, including to allied countries.

"We're working hard to see if we can get the Taiwanese and TSMC, which is a big company there, to, you know, prioritize the needs of our auto companies since there's so many American jobs on the line," Raimondo said in response to a question from a General Motors Co executive. "As I said, there's not a day goes by that we don't push on that." Raimondo added that "the medium- and long-term solution, though, is like very simply making more chips in America."

Since February, President Joe Biden's administration has been prodding Taiwan on the issue, but automakers have reported no boost in chip supplies. The Commerce Department is planning a high-level meeting with automakers set to take place next week on the issue, said officials briefed on the matter. A Commerce Department spokesman declined to comment.

United Auto Workers Legislative Director Josh Nassar said in written testimony for a U.S. House hearing on Wednesday that the chips shortage has resulted in the layoffs of "tens of thousands of workers.... Clearly, we need to bolster domestic production of automotive-quality semiconductors." Last week, Ford Motor Co warned the chips shortage may slash second-quarter production by half, cost it about $2.5 billion and about 1.1 million units of lost production in 2021.

GM said on Friday it would extend production halts at several North American factories because of the shortage. On April 12, Biden convened semiconductor and auto industry executives to discuss solutions to the chip crisis. He backs $50 billion to support U.S. chip manufacturing and research.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Blockchain in Healthcare: Opportunities and challenges

The use of blockchain in healthcare is a relatively new innovation with many of its uses still being explored and related technologies being developed, improved, and scaled. ...

Debate surrounding vaccine passports and development misses bigger picture

... ...

Blockchain vs IOTA: Looking for a better alternative

... ...

For stability, Iraq needs to crack down on corruption

... ...

Videos

Latest News

Two tornadoes kill at least seven in China; over 200 injured

Two tornadoes have killed at least seven people in China and left more than 200 others injured The Wuhan city government on Saturday said that six people had died and 218 were injured after a Friday night tornado.State media said one person...

Venezuela's Maduro says Citgo is key point in opposition dialogue

Venezuelan President Nicolas Maduro said the oppositions continued control of Venezuelan-owned U.S. refiner Citgo would be a key point in any eventual dialogue with opponents to resolve the countrys longstanding political crisis. Maduro ear...

Reuters Sports News Summary

Following is a summary of current sports news briefs.Critics of Tokyo Olympics submit petition urging cancellationCritics of Japans plan to hold the Tokyo Olympics despite a fourth wave of coronavirus infections submitted a petition on Frid...

Reuters US Domestic News Summary

Following is a summary of current US domestic news briefs.Go maskless Some Americans skeptical of new guidelines, other say its high timeNew U.S. guidance allowing people to go without masks in most places provided one more topic of disagre...

Give Feedback