Trade Secretary Gina Raimondo testified before the Committee on Appropriations during a hearing in the Dirksen Senate building on Capitol Hill, Washington, April 20, 2021.
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The US Department of Commerce is urging Taiwan Semiconductor Manufacturing Co. and other Taiwanese companies to prioritize the needs of US carmakers to alleviate chip shortages in the near future, Trade Secretary Gina Raimondo said on Tuesday.
Raymondo told the Council of America event that longer-term, increased investment was needed to produce more semiconductors in the United States, and that other critical supply chains needed to be relocated, including to allied countries.
“We are working hard to see if we can get the Taiwanese and TSMC, which is a big company out there, to know, prioritize the needs of our car companies because there are so many American jobs online,”
“As I said, not a day goes by that we don’t go on with this,” she said, adding that the medium- and long-term solution would be “just to make more chips in America.”
TSMC said tackling the shortage remains a top priority.
“TSMC is working with all countries to alleviate the shortage of automotive chips, we understand that this is a common concern of the global automotive industry,” a statement from Reuters said on Wednesday.
TSMC CEO CC Wei said last month that the company had been working with its customers since January to reallocate more capacity to support the automotive industry, but the shortage has worsened due to a snowstorm in Texas and a shutdown in Japan.
Wei expects chip shortages for its car customers to be significantly reduced from the next quarter.
The trade ministry is planning a high-level meeting with carmakers to be held next week on the issue of chip shortages, officials familiar with the matter said. A spokesman for the Ministry of Trade declined to comment.
United Auto Workers lawmaker Josh Nasar said in a written statement at a hearing in the US parliament on Wednesday that the chip shortage has led to layoffs of “tens of thousands of workers … Clearly, we need to strengthen domestic semiconductor production with quality automotive production. “
Last week, Ford Motor warned that chip shortages could halve production in the second quarter, which will cost
about $ 2.5 billion and about $ 1.1 million in lost production in 2021.
GM said Friday it will extend production shutdowns at several factories in North America due to shortages.
On April 12, Biden convened semiconductor and automotive executives to discuss solutions to the chip crisis. It supports $ 50 billion to support chip production and research in the United States.