Chip and automaker CEOs meet ahead of Biden signing

By David Sheparson

WASHINGTON (Reuters) – The heads of chipmakers GlobalFoundries and Applied Materials and automakers Ford Motor and General Motors Co are due to meet in a closed-door summit with U.S. government officials on Monday to discuss plans for the management to invest in semiconductors.

On Tuesday, President Joe Biden will sign legislation to subsidize the US semiconductor industry and boost efforts to make the United States more competitive with China. The bill provides $52 billion in subsidies for chip manufacturing and research. It also includes an investment tax credit for chip plants estimated to be worth $24 billion.

GlobalFoundries CEO Thomas Caulfield said in a statement that the chip legislation “protects the economic security, supply chain and national security of the United States by accelerating the manufacturing of semiconductors on American soil.”

The legislation is intended to ease a persistent shortage that has hit the supply of goods from cars and guns to washing machines and video games. Thousands of cars and trucks remain parked in southeastern Michigan waiting for chips as shortages continue to plague automakers.

The companies said the summit would bring them together with government officials to “discuss how these public investments can accelerate semiconductor manufacturing and emerging technology, support automobile electrification with a ready supply of chips, including feature-rich chips, and strengthen the United States.” Joined”. ‘ economy, supply chains and national security”.

White House National Economic Council Director Brian Deese, Under Secretary of Defense for Acquisitions William LaPlante and National Security Council official Tarun Chhabra were among the officials in attendance.

Ford CEO Jim Farley said in a statement that “a reliable domestic supply of chips, including legacy semiconductors needed in the automotive and defense industries, will keep American manufacturing lines running.”

(Reporting by David Shepardson; Editing by Peter Graff)

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