Biden meets today with executives on chip shortage as U.S. auto industry feels the pain

Key Points

  • Estimates are that U.S. automakers will produce 175,000 fewer cars this year and will impact automakers' earnings

  • Intel sees the auto chip shortage as a sign of America facing a critical inflection point in its ability to innovate and secure adequate chip supplies

  • Intel is in talks to produce chips for carmakers

author-image

By

The global shortage in semiconductors has hit the automotive industry especially hard. Whole production lines have been shut down or delayed. President Biden assembled key CEOs from the automotive and semiconductor industries to discuss how to address the short-term crisis and the long-term supply chain issues that have been laid bare.

Intel CEO Pat Gelsinger said that Intel is in talks to produce chips for American automakers within six to nine months, as part of its new Foundry Services initiative. Tom Quillin, Intel senior director for security and trust policy said Intel “sees America at a critical inflection point” regarding semiconductor production – not just for the automotive industry, but for the U.S. tech industry as well.