U.S. Government Requests More Supply Chain Transparency

The increase in shortages during the pandemic has affected many large automakers, technology, and semiconductor companies in the U.S. Additionally, there have been rising concerns of potential factory shutdowns in mass chip production countries such as Vietnam and Malaysia that could create further supply chain problems for the U.S.

The Biden Administration is now pushing for more transparency about supply and demand from semiconductor companies as they rush to relieve the global chip crisis. This request will also aim to gather information on inventory and different customer segments. Commerce Secretary, Gina Riamondo, and National Economic Council Director, Brian Deese, are scheduled to assemble in the White House with representatives from major automakers, tech, and semiconductor companies.

The shortage has reaffirmed calls for funding from the U.S. government. The Semiconductor Industry Association has argued that U.S. chip manufacturing declined because U.S. production cannot compete with foreign chip manufacturers. “We hope that this is going to be the beginning of a broader push to get more transparency about supply and demand,” said one U.S. official as communication extends with production companies across the U.S. Currently, American officials are backing the approval of a $52bn package of government funding for the U.S. chip industry, demonstrating the urgency of chips for production to continue.

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Read the full article from Financial Times


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