Chip And Carmaker CEOs Meet Ahead Of Biden Signing

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

On Tuesday, President Joe Biden will sign legislation to subsidize the U.S. semiconductor industry and boost efforts to make the United States more competitive with China. The bill provides $52 billion in subsidies for chip manufacturing and research. It also includes an investment tax credit for chip plants estimated to be worth $24 billion.

GlobalFoundries CEO Thomas Caulfield said in a statement 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 persistent shortage that has affected supplies of goods from cars and weapons to washing machines and video games. Thousands of cars and trucks remain parked in southeast Michigan awaiting chips as the shortage continues to impact automakers.

The companies said the summit would bring them together with government officials to "discuss how these public investments can accelerate semiconductor and emerging technology manufacturing, support the electrification of automobiles with a ready supply of chips, including feature-rich chips, and strengthen the United States' economy, supply chains, and national security."

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 officials due to attend.

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