US presses chipmakers for ‘more transparency’ on supply chains

Semiconductor renewal

Biden administration officials are calling on semiconductor companies to “improve transparency” in their supply chains as they are in a hurry to mitigate the global chip crisis.

Authorities said they would formally request more information from companies in the supply chain, but their response is voluntary.

“We hope this will be the beginning of a broader push for greater transparency in supply and demand,” said one source.

Officials said the formal request filed in the US Federal Register aims to collect information on chip supply and demand, inventories, and various customer segments.

The move takes place when Secretary of Commerce Gina Raimondo and National Economic Council director Brian Deese convene a meeting with chip supply chain companies at the White House later Thursday.

The Biden administration Global tip shortage Since earlier this year, several automakers, including General Motors and Ford, have been forced to idle their US factories because they couldn’t buy computer chips.

The surge in demand for home appliances during the pandemic led to a shortage of chips. This is exacerbated in the United States by sanctions on Chinese chip maker Semiconductor Manufacturing International Corp.

It has plagued automakers around the world as chip makers diverted their supply to consumer electronics customers who are paying more for semiconductors.

On Wednesday night, US officials said they were increasingly concerned that the potential factory closures in Vietnam and Malaysia caused by the delta coronavirus mutant could further impact the chip supply chain. Part of the chip supply chain, including assembly and packaging, takes place in these countries.

This shortage has led to new calls from the US semiconductor industry for government funding. The Semiconductor Industry Association claims that US chip manufacturing is declining as subsidies provided to companies from foreign governments make chip manufacturing in the US uncompetitive.

US authorities support the approval of a $ 52 billion package of government funding for the US chip industry. It was passed by the Senate, but not yet approved by the House of Representatives.

Earlier this month, Commission President Ursula von der Leyen announced the creation of the Commission. Chip method To counter EU’s excessive reliance on Asian semiconductor producers as a “technical sovereignty issue”.

On Wednesday, US officials said they would work with allies to secure the supply chain.

Trade secret

FT has renewed its trade secret, a must-read daily briefing on the changing faces of international trade and globalization.

Sign up here Understand which countries, companies and technologies are shaping the new world economy.

US presses chipmakers for ‘more transparency’ on supply chains Source link US presses chipmakers for ‘more transparency’ on supply chains

Related Articles

Back to top button