Biden holds summit on semiconductor shortage
The White House will host a virtual summit this afternoon to discuss the $2 trillion jobs plan and steps to tackle the global chip shortage that is hampering automotive production.
A growing list of large carmakers have been forced to temporarily suspend production at some plants because of a global chip shortage that is now entering its fifth month.
The shortage is the result of rapid swings in demand. The onset of the pandemic led to mass shutdowns of automotive plans around the world in March and April last year, followed by an unexpectedly strong automotive recovery in the third and fourth quarters. Automotive applications consume around 10pc of global chip supply, a figure that is expected to rise. The difficulty now faced by consumers and producers is the length of time it takes to restart semiconductor production. Depending on the complexity of the chip, it can involve over 1,400 processing steps with a 20-week lead time to ramp up wafer production and six weeks for final stage, assembly, testing and packaging. Chip capacity was also put under pressure by rising demand to enable remote healthcare and office working. Another challenge faced by the industry is the high cost of developing the next generation of chips to enable 5G networks and the internet of things, high performance computing, machine learning and other leading edge technologies, with investment switching away from older platforms.
"The chip shortage represents a near-term crisis, but it can only be dealt with by longer-term solutions, such as dramatically increasing investment in US chip manufacturing capacity, as the Chips Act (creating helpful incentives to produce semiconductors for America) seeks to do," Washington-based think-tank ITIF vice president Stephen Ezell said.
Leading manufacturers have announced large investment programmes in recent weeks. Taiwan's TSMC — the world's largest contract chipmaker — plans to invest $100bn in new manufacturing capacity, South Korea plans to spend just over $106bn on four new fabrication plans and US firm Intel announced plans to invest $20bn on two new plants.
President Biden's proposed $2 trillion jobs plan, which is heavily focused on infrastructure, includes a $50bn investment in semiconductor manufacturing and research. Biden signed an executive order on 24 February for a 100-day review of supply chain issues for a range of critical goods including semiconductors, rare earths and other critical minerals, and pharmaceuticals.
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Liberty Merchant Bar to be 'mothballed', sources say
Liberty Merchant Bar to be 'mothballed', sources say
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Global battery installation growth slows in 1Q: SNE
Global battery installation growth slows in 1Q: SNE
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Japan’s Daihatsu fully reopens domestic auto operations
Japan’s Daihatsu fully reopens domestic auto operations
Tokyo, 7 May (Argus) — Japanese car manufacturer Daihatsu resumed operations at Kyushu and Osaka on 6 May and 7 May respectively, marking the full reopening of its domestic plants. Daihatsu produces around 400,000 units/yr and 6,000 units/yr at Kyushu in south Japan and Osaka in west Japan respectively, according to a company representative that spoke to Argus. Combined production at these two plants accounts for around half of its total domestic output. It suspended all its operations in December 2023 after it was accused of tampering with safety test results. Daihatsu partially resumed operations in February and March but the Kyushu and Osaka plants remained closed. The company's March output fell by 65.8pc from a year earlier to 30,453 units , although it recovered from 6,692 units and none in February and January respectively. The country's overall industrial production index increased by 3.8pc from the previous month, according to the ministry of trade and industry last week, mostly driven by a production recovery of passenger vehicles. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil unlocks relief spending to flooded state
Brazil unlocks relief spending to flooded state
Sao Paulo, 6 May (Argus) — Brazil's president Luiz Inacio Lula da Silva signed a decree to ease relief spending to Rio Grande do Sul state, which has been hit with historically heavy rainfall and floods. "We are going to do everything in our power to contribute to Rio Grande do Sul's recovery," he said today after signing the decree, adding that was only the first of "a large number of acts" for the state. The decree recognizes the state of emergency in Rio Grande do Sul and allows the federal government to grant funding and tax waivers to the state without having to comply with spending limits. In addition, it makes rules for public authorities to contract services and purchase products more flexible. The decree still needs both senate and congressional approval — which should be hasty, as both the senate and house leaders were present at the decree's signing. It is still not clear how much money it will take to rebuild the state, chief of staff Rui Costa and planning minister Simone Tebet said. But the minister of regional integration Waldez Goez estimated that it will take around R1bn ($200mn) to rebuild the state's highways. Rio Grande do Sul has been hit with heavy rainfall since 29 April. The highest volumes reached the central areas of Rio Grande do Sul, with cities receiving rainfall of 150-500mm (6-20 inches), regional rural agency Emater-RS data show. The monitoring station of Restinga Seca city, in the center of the state, recorded rainfall of about 540mm. Rainfall in Rio Grande do Sul overall surpassed 135mm in most of the state, according to the US National Oceanic and Atmospheric Administration (NOAA). State capital Porto Alegre is expected to receive more rain later this week, according to Rio Grande do Sul-based weather forecaster MetSul. MetSul warned that parts of the Porto Alegre metropolitan area could remain uninhabitable for weeks or months. The floods have left at least 83 dead and 111 missing, according to the state government. An additional 130,000 people have been displaced from their homes. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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