White House Says To Meet US Chipmakers, Auto Makers On Semiconductor Shortage
Faizan Hashmi 7 days ago Fri 09th April 2021 | 12:10 AM
WASHINGTON (UrduPoint News / Sputnik - 09th April, 2021) President Joe Biden's National Security Adviser Jake Sullivan will meet with US companies next week to discuss a crisis over the shortage of microchips that has impacted the country's automobile production, White House Press Secretary Jen Psaki said on Thursday.
US media reported earlier that Intel Corp. CEO Pat Gelsinger is among prominent executives from the microchip and auto makers who would attend the meeting. Gelsinger announced last month Intel's plans to spend $20 billion on two new chip factories in the US state of Arizona.
General Motors said the plant closures could range from a week or two to several additional weeks for plants that have already been idled due to the parts disruption. The automaker has said it expects the problem will reduce its operating profit by $1.5 billion to $2 billion this year.
Semiconductors are key components used in the infotainment, power steering and braking systems, among other areas.
One reason for the shortage of chips affecting automakers is that companies such as Intel were busy fulfilling orders for the consumer electronics industry, which has seen a quadrupling of demand for devices meant for both work and leisure as people spent more time at home during the coronavirus pandemic.