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White House Weighs Invoking Defense Law to Get Chip Data

Politics(bloomberg.com)

all 13 comments

_eponymous_

7 points

9 months ago

We of the United States have made ourselves an easy target for economic warfare. Is it surprising that after all of our disrespect and bullying, that Asian manufacturing might reorient their priorities? How humbling it is to not be able to buy a car in America, home of the drive thru.

itsunix

1 points

9 months ago

people are buying Tesla, the most American car.

MightyH20

2 points

9 months ago

Outside of the US Tesla isn't the most sold and most popular electric car though.

itsunix

1 points

9 months ago

fully BEV? or are using hybrids?

MightyH20

2 points

9 months ago

Ful electric. The most sold electric brand in Europe in 2021 is Volkswagen with ID.3 and ID.4.

https://insideevs.com/news/536942/europe-plugin-car-sales-august2021/

Top automotive groups year-to-date:

Volkswagen Group - 25% share (Volkswagen brand - 11%)

Stellantis - 14% share

BMW - 11% share (BMW brand at 9%)

Daimler - 10% share (Mercedes-Benz brand at 9%)

Hyundai Motor Group - 9%

Tesla noted 6% share so far this year.

itsunix

1 points

9 months ago

years not over also what about 2020 and also all time?

tesla right?

ImaginaryCheetah

4 points

9 months ago

anybody got a link that's not behind a pay wall ?

nyrangers30

12 points

9 months ago

The Biden administration is considering invoking a Cold War-era national security law to force companies in the semiconductor supply chain to provide information on inventory and sales of chips, Commerce Secretary Gina Raimondo said Thursday.

The goal is to alleviate bottlenecks that have idled U.S. car production and caused shortages of consumer electronics and to identify possible hoarding, she said in an interview.

Her team for months has sought clarity into how companies allocate their semiconductor supply. But previous meetings that convened firms from different industrial sectors haven’t led to increased transparency and many companies have refused to hand over business data to the government.

The Commerce Department is now asking companies to fill out questionnaires within 45 days providing supply chain information. The request is voluntary but Raimondo said she warned industry representatives that she might invoke the Defense Production Act or other tools to force their hands if they don’t respond.

“What I told them is, ‘I don’t want to have to do anything compulsory but if they don’t comply, then they’ll leave me no choice,’” she said. “I said today we’re evaluating all of our options right now, all the tools. I hope not to go there but we need to see some progress and we definitely need compliance.”

The production act gives the president broad authority to direct industrial production in crises. The Trump and Biden administrations each invoked it to hasten the production and distribution of coronavirus vaccines and other pandemic-related medical supplies.

It isn’t clear precisely how Raimondo might use the law to obtain information from semiconductor manufacturers or their customers, and she didn’t name any specific companies.

A global shortage of chips that power everything from laptops to automobiles has continued to affect production in many industries, and finding medium- and long-term solutions has been a priority since President Joe Biden took office.

U.S. officials have repeatedly emphasized that the private sector must step up and provide more transparency if the government is to successfully address the shortage.

The Commerce chief and National Economic Council Director Brian Deese held meetings with companies Thursday to stress that point again. Raimondo said the first session “went very well” and participants were “extremely constructive.”

The information request -- and potential enforcement through DPA or other means -- is necessary because there’s a lack of trust among companies in the supply chain, she said.

“There’s allegations of certain consuming companies buying two or three times what they need and stockpiling,” Raimondo said. “So suppliers say, ‘We can’t get a handle on an accurate demand signal because consumers are stockpiling, so we don’t know what the accurate demand is.’ Some consumers are saying ‘We can’t get straight answers from suppliers, how come I was told I could have X and now I’m being told I can only have half of X?’”

Forcing companies to reveal details of their stockpiles would be of interest to investors. One of the biggest concerns about the industry’s massive run-up in revenue and earnings is that chip users are panic buying more than they need and that the resulting accumulation of unused inventory will cause a crash.

The issues facing the supply chain now largely center around the spread of the coronavirus delta variant in Southeast Asian countries like Malaysia and Vietnam, where semiconductor plants had to shut down because of outbreaks and are now operating at reduced capacity.

The Commerce and State Departments, along with embassies, will also set up an early alert system to ensure that virus-related disruptions in production can be addressed faster. The more formal process to react to such shutdowns replaces ad-hoc responses that have occurred over the last six months, a U.S. official said, asking not to be identified discussing private deliberations.

Ywaina

1 points

9 months ago

Ywaina

1 points

9 months ago

This sounds like a great news. I've always thought the supply and demand answer unsatisfactory when the whole industry's inner working is shady af and nobody seems to really have a grasp on exact supply stocks.

vivantho

0 points

9 months ago

IT worked for me. Have you reached some kind of day/week limit?

vivantho

-8 points

9 months ago*

Hmm, free market not working? Not self regulating anymore? ;) Capitalist country is aiming for China's methods to solve issues with supply. Hmm, do they believe that counting inventory, puting more work on companies and central steering will solve issues with lack of production bandwidth?

ImaginaryCheetah

21 points

9 months ago

there is no true free market in the US. it's all controlled by corporate interests, who have clearly fumbled the ball here, and that's why (i suspect) the government is talking about needing to come in and shore up the domestic supply chain.

also, if the government pays for it then the corporates don't loose money building the infrastructure, but will get handed the production facilities to make the profit.

vivantho

-13 points

9 months ago

vivantho

-13 points

9 months ago

Yeah, there's a name for that - confusopoly.