In a meeting behind closed doors on Monday, the presidents of the chip companies GlobalFoundries (GFS.O) and Applied Materials (AMAT.O), as well as the automaker Ford Motor and General Motors Co (GM.N), were to discuss the administration’s plans to invest in semiconductors.
President Joe Biden will sign legislation on Tuesday to support the American semiconductor industry and forward initiatives to make the country more competitive with China. $52 billion in subsidies are included in the plan for semiconductor development and production. Additionally, it contains a $24 billion investment tax credit for chip factories.
GlobalFoundries CEO Thomas Caulfield said in a statement the chips legislation “protects U.S. economic, supply chain and national security by accelerating semiconductor manufacturing on American soil.”
The law intends to ease a chronic scarcity that has impacted the availability of items like vehicles, firearms, washing machines, and video games. As the shortfall continues to affect automakers, thousands of automobiles and trucks are still stalled in southeast Michigan while waiting for chips.
The companies said the summit would bring them together with government officials to “discuss how these public investments can accelerate semiconductor and emerging technology manufacturing, support the electrification of automobiles with a ready supply of chips, including feature-rich chips, and strengthen the United States economy, supply chains, and national security.”
Officials expected to attend were Tarun Chhabra of the National Security Council, Under Secretary of Defense for Acquisition William LaPlante, and Director of the White House National Economic Council Brian Deese.
Ford CEO Jim Farley said in a statement “a reliable domestic supply of chips, including legacy semiconductors needed in the automotive and defence industries, will keep American manufacturing lines humming.”