Biden meets executives to address semiconductor shortage

Washington, April 13 : US President Joe Biden and other White House officials met executives from 19 major companies to discuss the global semiconductor shortage that has severely affected American automakers.

"The semiconductor shortage, which is impacting American workers and families right now, is a top and immediate priority for the President and his senior most advisors on economic and national security," the White House said in a statement after hosting the virtual semiconductor summit on Monday.

"Participants emphasised the importance of improving transparency in the semiconductor supply chain to help mitigate current shortages and improving demand forecasting across the supply chain to help mitigate future challenges," the statement said.

They also discussed the importance of encouraging additional semiconductor manufacturing capacity in the US to make sure the country never again faces shortages, Xinhua news agency reported citing the White House as further saying.

During the meeting, Biden said that he has broad support in Congress to fund the domestic semiconductor industry.

"In fact, today, I received a letter from 23 senators, 42 House members, Republicans and Democrats, supporting the CHIPS for America program," he said.

John Neuffer, president and CEO of the Semiconductor Industry Association, said on Monday that funding the chip manufacturing incentives and research investments will "strengthen US semiconductor production and innovation across the board so all sectors of our economy have the chips they need".

"Today's meeting marks the continuation of a strong partnership between the Biden administration and industry to strengthen America's semiconductor supply chain by enacting federal investments in domestic chip manufacturing and research," Neuffer said in a statement.

The share of global semiconductor manufacturing capacity in the US has decreased from 37 per cent in 1990 to 12 per cent today, according to the association.