The heads of chipmakers GlobalFoundries and Applied Materials and carmakers Ford Motor and General Motors Co. were to meet in a closed-door summit with US government officials on Monday to discuss administration plans to invest in semiconductors.
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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 a $52 billion subsidy for chip manufacturing and research. It also includes an investment tax credit for chip plants that is estimated to be worth $24 billion.
GlobalFoundries CEO Thomas Caulfield said in a statement that the chips law “protects the American economy, supply chain and national security by accelerating semiconductor manufacturing on American soil.”
The law aims to address persistent shortages affecting the supply of goods from cars and weapons to washing machines and video games. Thousands of cars and trucks wait for chips in southeast Michigan as shortages hit automakers.
The companies said the summit would bring them “with government officials to discuss how these public investments can accelerate semiconductor and emerging technology manufacturing, with a ready supply of chips including feature-rich chips for automobiles.” Support electrification, and strengthen the United States’ economy, supply chain, and national security.”
White House National Economic Council Director Brian Deez, Under Secretary of Defense William LaPlante and National Security Council official Tarun Chhabra were among the officials present.
“A reliable domestic supply of chips, including legacy semiconductors needed in the automotive and defense industries, will continue to keep U.S. manufacturing lines humming,” Ford CEO Jim Farley said in a statement.