US Secretary of Commerce: Everyone is "lack of chip" and will not give automakers "special care"

US Secretary of Commerce: Everyone is "lack of chip" and will not give automakers "special care"

According to the Associated Press, U.S. Secretary of Commerce Gina Raimondo said on Thursday that she is looking for ways to help automakers under the global semiconductor shortage, but she will not give priority to such companies, making them superior to other companies. Above the chip user. Currently, the US semiconductor industry is putting pressure on the Biden government to provide assistance.

Raimondo convened a number of executives from large chip manufacturers, automakers and technology giants for a summit on Thursday. Here are the participating companies: Apple, Google, Ford Motor, General Motors, AT&T, Cisco Systems, Verizon Communications, Samsung Electronics, Qualcomm, and TSMC.

Raimundo said in an interview that there is no simple solution to the problem of chip shortages. The Biden administration has urged Congress to quickly pass legislation to provide funding for domestic production. "We are trying to figure out what role the government can and should play in increasing information sharing and forecasting to mitigate this short-term crisis."

The automobile industry is one of the main industries in the United States, and the insufficient supply of chips has caused some companies in this industry to suspend multiple assembly lines. "They are really difficult now," Raimundo said of the automaker.

However, she also mentioned other users who also face the crisis of core shortage, including electronics and medical equipment manufacturers. Raimondo said that although she is speaking for the auto industry, she is not calling for special treatment for the auto industry. She said, "I don't agree with that approach, and I didn't do it either."

Should the auto industry give priority to controversy

At present, the global core shortage crisis is hitting almost all electronic products from household appliances to notebook computers. The sales of a series of technology companies like Microsoft and Apple have begun to say no thanks to to chip shortages. During the epidemic, people rushed to buy various electronic products, which exacerbated the situation.

The automobile industry was one of the first industries that suffered severe production setbacks due to chip shortages at the end of last year. The industry has lobbied the Biden government to help it obtain chips. Chips are playing an increasingly important role in the automotive industry, controlling advanced touch screens and autonomous driving functions, as well as many other more conventional functions. Most of the chips needed by automakers come from older generation technologies. In recent years, chip companies have invested less in this area due to low profits.

According to data from AlixPartners, a consulting firm in New York, the global chip shortage has forced many automakers to suspend production, and the loss of revenue for the auto industry this year is estimated to be as high as 110 billion U.S. dollars.

Matt Blunt, chairman of the American Automotive Policy Council, said, “When you are unable to assemble a car in the United States because you lack a small amount of semiconductor chips, the impact on the economy is the same as that of assembling consumer electronics in Asia. It's completely different." The committee members include Ford Motor, General Motors and Stellatis NV. Blunt said, "Of course we support the goal of ensuring that all industries have the chips needed to meet consumer needs, but before that, we think it's reasonable to prioritize the automotive industry."

In this regard, the major trade groups in the semiconductor industry and consumer electronics said that they oppose any preferential treatment to the automotive industry. Gary Shapiro, chairman of the Consumer Technology Association, said, “The shortage of chips is affecting consumer technology companies across the board, from personal computers and mobile devices to car audio manufacturers and automakers.”

Automakers have been urging chipmakers to restructure their factories to ease the shortage. Managers in the chip industry say that some chip companies are already looking for solutions, but the challenges facing the automotive industry will not be resolved soon. Automakers cancelled many chip orders at the start of the epidemic last year, believing that demand will not devour within the short term. And when demand surged late last year, chip factories had promised to produce chips for notebook computers and other hardware manufacturers that were in high demand.

Prior to the meeting hosted by Raimondo on Thursday, US President Biden also attended a similar meeting at the White House last month. US government officials have admitted that there is no way to solve the problem of chip shortages in the short term, and the focus is on a long-term strategy to avoid future shortages.

Reprinted from the Financial Association