© Reuters. FILE PHOTO: U.S. President Biden indicators an govt order on the financial system on the White Home in Washington

By Nandita Bose

WASHINGTON (Reuters) – U.S. President Joe Biden will urge Congress to take a position $50 billion in semiconductor manufacturing and analysis when he meets with high executives from almost 20 main firms on Monday in regards to the world chips scarcity that has roiled the automotive trade and know-how corporations.

The push is a part of his broader deal with rebuilding U.S. manufacturing as a powerhouse for the world’s largest financial system – and a supply of good-paying jobs – after years of declining investments and productiveness progress, a senior administration official mentioned.

White Home spokeswoman Jen Psaki informed reporters that no quick determination or announcement was more likely to come from the assembly.

“One of many causes the president is stopping by this assembly … is to listen to straight from firms in regards to the impacts, what would assist probably the most via this time period,” she mentioned.

The White Home assembly is billed because the “CEO Summit on Semiconductor and Provide Chain Resilience” and can embody White Home nationwide safety adviser Jake Sullivan and Nationwide Financial Council Director Brian Deese.

Biden is predicted to cease by the assembly to push his $2 trillion infrastructure plan, which incorporates $300 billion geared toward increasing manufacturing, particularly in deprived areas and communities of coloration via loans, grants, investments and the focused use of federal procurements.

Whereas the proposed investments will take time to implement, the administration can also be searching for “short-term and medium-term options that can be mentioned in the course of the summit,” the official mentioned. No additional particulars had been instantly out there.

As of noon Friday, 19 main firms had agreed to ship executives, together with Basic Motors (NYSE:) Chief Government Mary Barra, Ford Motor (NYSE:) CEO Jim Farley and Chrysler-parent Stellantis NV CEO Carlos Tavares.

The “summit displays the pressing must strengthen essential provide chains,” Deese mentioned in a press release.

Commerce Secretary Gina Raimondo will even participate, in addition to executives from GlobalFoundries, PACCAR Inc (NASDAQ:), NXP (NASDAQ:) and Taiwan Semiconductor Manufacturing Co, AT&T (NYSE:), Samsung Electronics (OTC:) Co, Google-parent Alphabet (NASDAQ:) Inc, Dell Applied sciences (NYSE:), Intel Corp (NASDAQ:), Medtronic (NYSE:), Northrop Grumman (NYSE:), Hewlett Packard Enterprises, Cummins (NYSE:) and Micron Know-how (NASDAQ:).

A U.S. auto trade group final week urged the federal government to assist and warned {that a} world semiconductor scarcity might end in 1.28 million fewer autos constructed this yr and disrupt manufacturing for one more six months.

Over the weekend, GM canceled extra truck manufacturing shifts at two U.S. crops.

“Making an attempt to deal with provide chains on a crisis-by-crisis foundation creates essential nationwide safety vulnerabilities,” Sullivan mentioned in a press release.

Automakers have been hit significantly arduous by the worldwide chip scarcity after many canceled orders when their crops had been idled by the coronavirus pandemic.

Once they had been able to resume manufacturing, they discovered chipmakers had been busy fulfilling orders for the buyer electronics trade, which has seen demand for premium gadgets – each for work and leisure – increase as folks spent extra time at residence.

Broadband web, cellphone and cable TV firms additionally face delays in receiving “community switches, routers, and servers,” in accordance with an trade group.

“Shortages in semiconductors and the related delays will end in lots of of hundreds of thousands of {dollars} in impression to the broadband and cable tv trade this yr,” the group mentioned final week.

Biden desires at the least $100 billion to spice up U.S. semiconductor manufacturing and fund investments to assist manufacturing of essential items, however officers mentioned this funding won’t tackle short-term chip wants.

Later this week, the Senate Commerce Committee will maintain its first listening to on a bipartisan measure to bolster know-how analysis and growth efforts in a bid to deal with Chinese language competitors.

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