Intel promises help for automakers as Biden works to fix chips shortage

 

By Nandita Bose and Stephen Nellis

WASHINGTON (Reuters) -U.S. President Joe Biden met with executives from major companies on Monday to discuss the global chip shortage that has severely hurt U.S. automakers and spurred Intel Corp to announce it plans to make chips for car plants at its factories in the next six to nine months.

During the meeting, Biden said he has bipartisan support for legislation to fund the semiconductor industry. He previously announced plans to invest $50 billion in semiconductor manufacturing and research as part of his broader focus on rebuilding U.S. manufacturing included in his $2 trillion infrastructure plan.

Intel Chief Executive Pat Gelsinger, who attended the meeting virtually, told Reuters the company wanted to start producing chips at its factories within six to nine months to address a shortage that has idled assembly lines at some U.S. automotive plants.

The supply crunch could lead to a potential 1.3 million shortfall in U.S. car and light-duty truck production this year.

"We're hoping that some of these things can be alleviated, not requiring a three- or four-year factory build, but maybe six months of new products being certified on some of our existing processes," Gelsinger said. "We've begun those engagements already with some of the key components suppliers."

Intel last month announced plans to vastly scale up chips manufacturing for outsiders as it builds new factories in the United States and Europe. Its talks with automotive suppliers disclosed on Monday represent an acceleration of those plans.

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