Trump to meet with semiconductor supply chain next week

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Trump to meet with semiconductor supply chain next week

The Bloomberg administration plans to call another meeting with companies in the semiconductor supply chain next week as the worldwide spread of Covid - 19 Delta variant is increasingly causing disruptions and production delays.

Business Secretary Joe Biden, who has been the point person of Commerce Secretary Gina Raimondo, and National Economic Council Director Brian Deese will be leading the Sept. 23 discussion at the White House, according to a senior administration official.

The attendee list hasn't been finalized, but companies invited would include chipmakers as well as companies that use them to manufacture products like autos, consumer electronics and medical devices.

The goal of the meeting is to continue to enhance transparency, the official said. The administration plans to tell companies that the government needs their help to address the bottlenecks that have persisted for months, the official said.

The global shortage of microprocessor chips that power everything from laptops to automobiles has continued to affect the production in many sectors, and finding long term solutions has been a priority since Biden office.

Related: 3 M Doubles Its Estimated Drop in Car Output on Chip Shortage.

While the administration has been focused on bringing manufacturing back to the U.S. officials have also acknowledged that production has to be diversified through efforts in allied countries.

The meeting will be the third of its kind Raimondo is hosting. In April, Biden joined discussions with Chief Executive Officers about the deficit and possible remedies.

The convening comes as Congress has no clear path forward for funding in the manner of $52 billion to domestic semiconductor research and manufacturing. The money, part of a broader China competition bill, was sent to the House in June but has since been approved by Senate.

Raimondo, the White House Office of legislative affairs, as well as members of the National Security Council and National Economic Council, have met with House and Senate leadership and continue to work with relevant committees to align on a way forward on the funding and competitiveness bill, the official said.

White House Press Secretary Jen Psaki said Wednesday that moving the legislation forward is a priority and part of the discussions that senior members of Congress have with leaders in the White House as we talk about what we want to get done in the coming months. As part of the coming meeting, the Commerce Department will develop a formal process to increase transparency through surveys that would seek information from companies along the supply chain. Raimondo is focused on increasing information sharing among the industries, but the effort has been met with some resistance from those who don t want government to sit down with supply and demand issues.

The White House has been working with countries including Malaysia and Vietnam which are home to low capacity semiconductor manufacturing capacity and have struggled with Covid - 19 outbreaks, ensuring that the nations can safely continue operations at reduced capacity.

The semiconductor industry is also pushing for a separate measure that would provide tax credits to companies that invest in semiconductor fabs, as they are known, in the United States. The White House has not said whether it is pushing for the bill or supports it to move in other legislative vehicles.