The Biden administration will announce a new transparency initiative with semiconductor producers that attempts to address the global supply chain shortage driving up the prices of cars and other electronic goods.
Thursday’s announcement marks the administration’s first substantive action to address rising prices in the auto industry and other sectors that rely heavily on semiconductors since designating those chips as one of four critical supply chain bottlenecks earlier this spring.
White House economists had previously attributed roughly half of all current inflation to “transitory” semiconductor shortages, yet production for cars, laptops, televisions and a number of electronic goods were forced to a temporary halt in September over chip supply concerns.
The initiative will be rolled out at a virtual meeting led by Commerce Secretary Gina Raimondo and National Economic Council Director Brian Deese. A number of companies and industry groups are expected to attend, per senior administration officials, including Intel, Samsung, Apple, General Motors, Ford, Taiwan Semiconductor Manufacturing, Stellantis, Microsoft, AAI, SIA, Daimler and more.
According to one administration official, the group will address the “impact the delta variant has had on global semiconductor supply chains and the industry’s progress towards improving transparency and trust across the supply chain of firms that both produce and consume chips.”
Click here to read the full report from Christian Datoc at Yahoo Finance.