The U.S. auto industry badly needs chips Intel plans to produce its own within six months at the earliest

U.S. President Joe Biden today discussed the global chip shortage with top executives of major corporations. The chip shortage is endangering the auto manufacturing industry, prompting semiconductor giant Intel Corporation (Intel) to announce that it plans to begin producing its own chips for use in the auto industry within the next six to nine months.

Biden said at the meeting, the Democratic and Republican parties support legislation to fund the semiconductor industry. He previously announced several plans to invest $50 billion in semiconductor manufacturing and research and development, which is part of his plan to promote the $2 trillion infrastructure.

There are many reasons for the global chip shortage. Last year, automakers temporarily shut down factories due to the 2019 coronavirus disease (COVID-19) outbreak and began competing with the consumer electronics industry for chips once work resumed.

The White House said after the meeting that Biden and his senior staff see semiconductor shortages as “the most important and urgent priority”.

Intel Chief Executive Officer Pat Gelsinger (Pat Gelsinger) by video conference, he said in an interview with Reuters, Intel hopes to start manufacturing chips in its own factories within six to nine months to solve the shortage problem, which has led to the shutdown of some U.S. auto plants assembly lines.

The lack of chip supply may force the United States to reduce the production of 1.3 million cars and light trucks this year.

Jissinger said, “We want to relieve some of the problems and not seek to build the plant in three or four years, but maybe six months to certify new products in some of our existing processes.” He said Intel has begun talks with some key component suppliers.

Intel last month has announced plans to significantly increase the scale of chip manufacturing for external customers, and the construction of new factories in the United States and Europe. Today’s revelation of Intel’s talks with the automotive industry means that these plans are accelerating.

The U.S. Senate Commerce Committee will hold a hearing this week on a measure aimed at promoting technology research and development in response to Chinese competition, with bipartisan support for the measure.