Commerce Department urges Taiwan to supply more chips to U.S. automakers
Commerce Secretary Gina Raimondo testifies before the Senate Appropriations Committee during a hearing in the Dirksen Senate Office building on Capitol Hill in Washington, DC on April 20, 2021.
Chip Somodevilla | Swimming pool | Reuters
US Department of Commerce is pushing Taiwan Semiconductor Manufacturing Co and other Taiwanese companies to prioritize the needs of US automakers to alleviate short-term chip shortages, Commerce Secretary Gina Raimondo said Tuesday.
Raimondo told a Council of the Americas event that increased, longer-term investments were needed to produce more semiconductors in the United States and that other critical supply chains needed to be resubmitted, including to the allied countries.
“We’re working hard to see if we can get the Taiwanese and TSMC, which is a big company out there, to, you know, prioritize the needs of our automakers because there are so many American jobs at stake,” he said. declared Raimondo in response to a question from a General Motors executive.
“Like I said, there isn’t a day that we don’t insist on this,” she said, adding that the medium to long term solution would be “just to make more chips. in America”.
TSMC said addressing the shortage remains its top priority.
“TSMC has worked with all parties to alleviate the shortage of auto chip supply, we understand this is a common concern of the global auto industry,” he said in a statement to Reuters on Wednesday.
TSMC CEO CC Wei said last month that the company has been working with customers since January to reallocate more capacity to support the auto industry, but the shortage has worsened due to a snowstorm. in Texas and a fabulous manufacturing disruption in Japan.
Wei expected the chip shortage for its automotive customers to be significantly reduced from the next quarter.
The Commerce Department is planning a high-level meeting with automakers next week on the chip shortage issue, officials briefed on the matter said. A Commerce Department spokesperson declined to comment.
United Auto Workers legislative director Josh Nassar said in written testimony during a United States House hearing on Wednesday that the chip shortage resulted in the layoff of “tens of thousands of workers … He is clear that we must strengthen the domestic production of automotive-grade semiconductors. “
Last week, Ford engine warned the chip shortage could halve second-quarter output, cost it
about $ 2.5 billion and about 1.1 million units of production lost in 2021.
GM said on Friday it would extend production shutdowns at several North American factories due to the shortage.
On April 12, Biden brought together leaders from the semiconductor and automotive industry to discuss solutions to the chip crisis. It is supporting $ 50 billion to support chip manufacturing and research in the United States.