Biden administration officials say they’re starting to see signs of relief for the global semiconductor supply shortage, including commitments from manufacturers to make more automotive-grade chips for car companies that have had to idle production, according to a report by Automotive News.
U.S. Commerce Secretary Gina Raimondo, who has led President Joe Biden’s efforts on chip supply, has brokered a series of meetings between semiconductor manufacturers, their suppliers, and their customers including automakers. Senior administration officials said the meetings helped ease mistrust between the sides related to the chipmakers’ production and allocation and automakers’ orders.
The result has been more transparency about the manufacturers’ production and shipments and a gradual increase in supply for automakers, Raimondo said in an interview. The administration has also recently pressed governments in Malaysia and Vietnam to ensure semiconductor plants would be deemed “critical” businesses and maintain some production following COVID-19 outbreaks, officials said.
“You’re starting to see some improvements,” Raimondo said, adding that in recent weeks, Ford Motor Co. CEO Jim Farley and General Motors CEO Mary Barra have told her that “they’re starting to get a little bit more of what they need” and the situation is “a little bit better.”