- Taiwan Economic Minister Wang Mei-Hua acknowledged receipt of a letter from the White House on the global shortage of auto chips and assured a resolution, Reuters reports.
- Automakers including Volkswagen AG (OTC: VLKAF) (OTC: VLKPF), Ford Motor Co (NYSE: F), and General Motors Co (NYSE: GM) resorted to production holidays to beat the crisis with strong possibilities of reduced production going forward.
- U.S. chip companies, including Intel Corp (NASDAQ: INTC), Qualcomm Inc (NASDAQ: QCOM), Micron Technology Inc (NASDAQ: MU), and Advanced Micro Devices Inc (NASDAQ: AMD), reached out to President Biden for a possible solution. Incentives were promised to Samsung Electronics Co Ltd (OTC: SSNLF) for a New York plant. Apple Inc’s (NASDAQ: APPL) major chip supplier Taiwan Semiconductor Mfg Co Ltd (NYSE: TSM), is looking forward to a $12 billion chip plant in Arizona to come online by 2024.
- Reportedly, Wang met the local chip makers previously on the issue. “Going forward, manufacturers are doing what they should,” she said.
- The chip shortage has become a diplomatic issue as Germany’s economy minister has also written to Wang asking for help.
- TSM plans to raise its capital expenditure to $28 billion this year to resolve the crisis.
- Price action: TSM shares are down 1.47% at $134.64 in the pre-market session on the last check Monday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.