U.S. Commerce Secretary: ‘Aggressive’ action on chip shortage needed

U.S. Commerce Secretary Gina Raimondo said on Thursday it is time to get “aggressive” in addressing the worsening semiconductor chip shortage that has caused automakers and others to cut production and impacted thousands of U.S. workers.

TSMCDavid Shepardson for Reuters:

Automakers from General Motors Co. to Toyota Motor Corp. have slashed output and sales forecasts due to scarce chip supplies, made worse by a COVID-19 resurgence in key Asian semiconductor production hubs.

In June, the Senate voted to approve $52 billion to boost U.S. semiconductor production.

“Fundamentally the solution is that we need to make more chips, and we need to make more chips in America, which is why the House can’t pass the Chips Act fast enough, as far as I am concerned. We need the money, we need to make more chips,” Raimondo said.

Companies attending the virtual White House meetings include Detroit’s Big Three automakers, plus Apple Inc., Daimler AG, BMW AG, GlobalFoundries, Micron, Microsoft Corp, Samsung, TSMC, and Intel Corp.

MacDailyNews Take: Obviously, compared to a company like Apple, which recognized the impact COVID shutdowns would have – i.e. widespread chip shortages – and planned accordingly, the average automaker had the foresight of a ping pong ball.

See also:
Apple supplier TSMC to build multibillion-dollar chip plant in Arizona with Trump admin backing – May 14, 2020
President Trump and Intel CEO announce $7 billion investment in next-gen semiconductor fab in Arizona; will create more than 10,000 jobs – February 8, 2017

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

12 Comments

  1. The current chip crunch is expected to last another 12 to 24 months. A HUGE percentage of the global chip supply comes from Asia; Taiwan, Korea and China. Most of those factories are running at full capacity now with all production and future production already contracted out to buyers.

    It is unclear from the article how the upcoming White House meeting will address the current short term situation (1 to 2 years) or if it is even possible to do so.

    Any increases in US chip production is a medium term (5 to 10 years out) to long term (11 years and beyond) issue.

    “We need the money. We need to make more chips.” Yes, this is true. But, they also need time (measured in 5, 10, 15, 20 years).

    Who will give them the needed ‘time’?

    1. It’s all very simple.

      1) Have a meeting
      2) Put the best people on a committee.
      3) Make sure they are political operatives
      4) Introduce legislation to throw as much money as possible at the problem
      5) Set up shell companies to take a cut of the money
      6) Proclaim it a resounding success
      7) Announce Republicans looking to kill it are “racist”.
      8) Rinse laundered money, repeat…

      1. That the vast amount of the global chip supply comes out of Asia cannot be “pinned on” Cook or Biden (or Trump). Manufactures have been leaving the US for the last 40 to 50 years… when Tim was about 10 or 15 years old. Nothing new with the current situation.

        Where do you suppose Apple should procure their chips? Any suggestions?

        1. Putting all manufacturing eggs in one basket is 100% Cook CLUELESSNESS.

          Shortsighted NAFTA in the 1990s started the RUSH of companies leaving for China, including Apple thanks to Cook, and made their economy second in the world.

          Where to make chips, preferably the USA, but Biden is also clueless and hostile to big business wanting to raise their taxes. Almost anywhere but China…

  2. The automotive chip shortage is compounded by the fact that the automakers continue to use obsolete device fab resolutions and the fabs are reluctant, wisely, to invest in new fabs to support them. One or more fabs had substantial damage, and others inpacted by worker COVID issues. This started long before the current administration entered office, so the above political comments, which on the face should be banned from this web site, are as inaccurate as much of the propaganda that is floating around about moist everything.

    1. While you are banning comments you don’t agree with, should we also burn any books that mention it? Secretly shuttle away any who speak it and, say, incinerate them? Any of this ring any bells?

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