Biden’s’Semiconductor Countermeasure Meeting’ of Increasing Edition…Invited by Samsung and GM followed by Intel

Input 2021.04.06 15:44

As the world’s largest integrated semiconductor company (IDM) Intel was invited to a global’semiconductor countermeasures meeting’ hosted by Joe Biden’s administration, it was predicted that the plate could be bigger than expected.

On the 6th, Reuters reported that Intel CEO Pat Gelsinger was virtually attending the White House countermeasures meeting on the 12th. Until now, 10 companies including Samsung Electronics, General Motors (GM), and Global Powdery were expected to attend, but this is the first time Intel has been mentioned.

According to Reuters, the meeting will be presided over by White House National Security Adviser Jake Sullivan, who is close to President Joe Biden, and Chairman of the National Economic Commission (NEC) Brian Dee.

Earlier, Bloomberg Communications conducted a meeting at the White House on the 12th of this month to discuss countermeasures against the recent global semiconductor supply shortage by US President Joe Biden’s security and economic aides. It was reported on the 1st that they plan to invite them.

On the surface, this meeting is a meeting to discuss countermeasures for the global semiconductor supply and demand crisis, but it is observed that the US administration will present proposals to global companies to reorganize the global semiconductor supply chain centered on the US.

Earlier, U.S. President Joe Biden announced a plan for infrastructure investment worth 2.5 trillion dollars (about 2542 trillion won) on the 31st of last month, of which 50 billion dollars (about 56.45 trillion won) will be invested in the semiconductor field. With the recent scarcity of automotive semiconductors, the US government has announced that it will cultivate the semiconductor ecosystem at the national level while countries are accelerating their efforts to become independent of technology.

The U.S. Congress passed the Defense Authorization Act (NDAA) in January, laying the groundwork for federal funding for semiconductor research and development (R&D) and investment, and President Biden ordered a review of the U.S. semiconductor supply chain. He issued an administrative order that predicted large-scale support. The U.S. government previously announced that it would deduct 40% of its investment expenses by 2024 and provide 22.8 billion dollars (about 25.71 trillion won) to semiconductor infrastructure and R&D to foster its own semiconductor industry.

Experts point out, however, that the US should cooperate with its allies to reexamine the semiconductor supply chain rather than focusing on strengthening its domestic semiconductor production capacity. Given that most of the world’s semiconductors are produced at TSMC in Taiwan and Samsung Electronics in South Korea, leveraging the existing semiconductor supply chain is far more effective than providing incentives to new semiconductor factories.

In fact, the National Artificial Intelligence Security Council (NSCAI), an official advisory body in the US Congress and a think tank in the field of artificial intelligence (AI), told the Biden administration in a report released last February, “Taiwan and Korean companies with advanced technology “We need to build strong trade and investment relations with these countries so that we can set up many factories.”

The shortage of automotive semiconductors has intensified in the aftermath of the Corona 19 crisis that began last year. Due to the decline in demand for automobiles, automakers reduced their orders for semiconductors for vehicles, and semiconductor manufacturers responded by increasing the production of semiconductors used in smartphones and data centers instead of reducing the production of semiconductors for vehicles.

However, with the economic recovery and rapid increase in sales of new cars from the end of last year, the auto industry has recently been in a situation where it has stopped operating some factories because it cannot obtain semiconductors for vehicles.

The conflict between the US and China also exacerbated the situation. Mark Liu, chairman of Taiwan TSMC, the world’s largest semiconductor foundry (consignment production) company, said at a recent event in Taiwan that uncertainty in US-China relations led to a change in supply chain, and some companies increased orders to secure inventory. It was pointed out that it was the main cause. It is explained that the stockpiling of companies concerned about the shortage of supply due to the conflict between the United States and China caused shortages.

According to an analysis, the attendance of the CEO of Intel, who is continuing close collaboration with the US administration, increases the likelihood that the countermeasure meeting will pressure additional investments in major allied companies such as Samsung Electronics.

Earlier, Intel announced that it will invest 20 billion dollars (about 22 trillion won) last month to build two new fabs in Arizona and re-enter the foundry market.

At the time, CEO Galsinger said, “Intel is working with President Biden’s administration and Arizona in incentives to support new factories.” I am trying to sign a contract with him,” he said.

An industry insider said, “On the surface, there seems to be a request to expand the supply of semiconductors in the short term, as the problem of semiconductor shortages continues globally, but it may mean that the insiders are asking to speed up investment in foundry factories in the country.”