White House press secretary Jen Psaki says President Biden plans to sign an executive order in the coming weeks to review supply chains for critical goods like semiconductor chips.
The global semiconductor shortage roiling automakers, including General Motors and other industries, is now a priority for the White House which is investigating “choke points in the supply chain” which are hurting American workers.
Continue Reading Below
“One of the central motivations for the Executive Order the President will sign in the coming weeks is to undertake a comprehensive review of supply chains for critical goods. The review will be focused on identifying the immediate actions we can take from improving the physical production of those items in the U.S. to working with allies to develop a coordinated response,” said White House Press Secretary Jen Psaki on Thursday.
GM WARNS ON CHIP SHORTFALL AFTER EARNINGS BEAT
The U.S. has slipped in manufacturing against rivals with its share of worldwide manufacturing capacity now at just 12% compared to 37% in 1990, according to the Semiconductor Industry Association, whose company members include AMD, Nvidia, Micron and others.
CLICK HERE TO READ MORE ON FOX BUSINESS
The SIA, today in a letter, urged the Biden administration to “include substantial funding for semiconductor manufacturing and research in the administration’s economic recovery and infrastructure plan” to help return to the U.S. to a place of leadership.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMD | ADVANCED MICRO DEVICES INC. | 92.66 | +0.31 | +0.34% |
| NVDA | NVIDIA CORPORATION | 610.03 | +19.46 | +3.30% |
| MU | MICRON TECHNOLOGY INC. | 86.48 | +4.13 | +5.02% |
Earlier this week, GM told investors the shortage may clip as much as $2 billion off earnings [EBIT], as it stands now. In the meantime, the company will allocate resources to its higher-margin vehicles.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS COMPANY | 53.50 | -1.38 | -2.51% |
“We expect the shortage to be temporary, and we’ll look to focus on protecting supply of our highest demand products such as full-size trucks and SUVs as well as EVs,” said CFO Paul Jacobson on the automaker’s earnings call.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR COMPANY | 11.43 | -0.34 | -2.85% |
Ford and others have warned of production shutdowns due to the shortage which is being caused, in part, due to heavy demand for electronics and other products coveted during the pandemic and the working from home mandate from many industries.
FORD F-150 PRODUCTION HIT BY CHIP SHORTAGE
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NOK | NOKIA CORP. | 4.10 | -0.06 | -1.53% |
Nokia’s CEO Pekka Lundmark also highlighted the issue last week saying; “this is not a Nokia specific issue in any way, but a world issue for the next year or two, its difficult to say exactly where it will all lead to, but requires a lot of attention.”
