TSMC, Apple's chip partner, will be attending a White House virtual summit on Apr. 12 to discuss with other chip producers and tech executives how to fix the ongoing global semiconductor shortage.
Apple and TSMC at the White House summit
The United States government and the governments around the world are all keen to fix the issue of chip shortages, which has led to problems for device producers in getting sufficient supplies.
The issue is also affecting Apple and its products, with issues acquiring some parts affected by the market problems.
As part of a bid to find a solution to this problem, the White House is holding a virtual summit on Apr. 12, including the CEOs and other executives from many major producers.
According to CNBC, the companies will include Dell, Intel, Samsung HP, GM, Alphabet, and others.
While Apple is not on the list of companies that are included in the discussion, it is represented in proceedings by TSMC.
The chip foundry, which works with Apple on A-series chips as well as Apple Silicon, is making major investments in production in the United States.
TSMC's plans include a factory in Arizona for chip production, an effort that is valued at around $12 billion, which is highly likely to provide some production expansion, with the company declaring its April plan to spend $100 billion to chip fabrication expansion over three years.
The White House summit will be hosted by National Security Advisor Jake Sullivan and NEC Director Brian Deese, and will also be joined by Secretary of Commerce Gina Raimondo.
The session will discuss President Joe Biden's American Jobs Plan and how to improve the U.S supply chain for semiconductors.
President Biden signed an executive order on Feb. 24 that set up a 100-day review of supplies for batteries, processors, and pharmaceuticals.
It is thought that the review could lead to a more proactive one-year review probing domestic production and the possibility of using the Defense Production Act.
The White House also issued its budget request to Congress on Apr. 16, which The Verge reports includes a request for $150 million to find a pair of manufacturing programs. One of the programs will focus on the semiconductor shortage.
Semiconductor shortage effects
The coronavirus pandemic has led to a shortage of semiconductors worldwide. Semiconductors are needed in devices, vehicles, and more in order for it to function, according to CNBC.
Semiconductor chips are very important components of new cars for areas like infotainment systems and more basic parts like power steering and brakes.
Depending on the car and its options, experts stated that a car could have hundreds of semiconductors. High-priced cars with advanced safety and infotainment systems have far more than a base model, including different types of chips.
In 2020, numerous companies lost billions due to slow production and a shortage of semiconductors.
General Motors lost almost $2 billion last year in its earnings. Ford Motor stated that their earnings could lower by $2.5 billion by the end of the year. Honda Motor and Nissan Motor combined expect to sell 250,000 fewer cars through mid-2021 due to the shortage.
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Written by Sieeka Khan
