WASHINGTON (Pakistan Point News / Sputnik - 04th May, 2021) The United States is trying to get Taiwanese chip companies to prioritize orders from American automakers struggling to keep up with demand for cars in an economy recovering from the coronavirus pandemic while facing shortages of such semiconductors, US Commerce Secretary Gina Raimondo said Tuesday.
"We're working hard to see if we can get the Taiwanese and TSMC, which is a big company there, to, you know, prioritize the needs of our auto companies since there's so many American jobs on the line," Raimondo said in response to a question from a General Motors executive during a discussion on the Washington Conference on the Americas. "As I said there's not a day that goes by that we don't push on that."
Semiconductors are key components used in the infotainment, power steering and braking systems, among other things.
General Motors said it was temporarily idling or extending shutdowns at several automaking plants due to a chip shortage. The US automaking giant has said it expects the problem will reduce its operating profit by $1.5 billion to $2 billion this year.
One reason for the shortage of chips affecting US automakers is that local manufacturers such as Intel were busy fulfilling orders for the consumer electronics industry, which has seen a quadrupling of demand for devices meant for both work and leisure as people spent more time at home during the pandemic.
A closure of multiple US auto assembly plants last year during the height of COVID-related shutdowns also prompted local chip manufacturers to redirect supplies to other industries, creating a shortage when demand for cars snapped back stronger than expected.
