Chipmakers GlobalFoundries, Ford, GMs to hold summit

WASHINGTON Reuters -- The heads of chipmakers GlobalFoundries and Applied Materials and Ford Motor and General Motors Co were to meet Monday at a closed-door summit with U.S. government officials to discuss plans to invest in semiconductors.

President Joe Biden is expected to sign legislation to subsidize the U.S. semiconductor industry and make the United States more competitive with China. The bill provides $52 billion in subsidies for chip manufacturing and research. There is an investment tax credit for chip plants estimated to be worth $24 billion.

In a statement, GlobalFoundries CEO Thomas Caulfield said that the chips legislation protects U.S. economic, supply chain and national security by accelerating semiconductor manufacturing on American soil. The legislation aims to alleviate a shortage that has affected supplies of goods from cars and weapons to washing machines and video games. Thousands of cars and trucks are parked in southeast Michigan awaiting chips as the shortage continues to affect automakers.

The summit will bring them together with government officials to discuss how public investments can accelerate semiconductor and emerging technology manufacturing, support the electrification of automobiles with a ready supply of chips, and strengthen the United States economy, supply chains, and national security. The White House National Economic Council director Brian Deese, Under Secretary of Defense for Acquisition William LaPlante and National Security Council official Tarun Chhabra were among the officials who were due to attend.

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