Biden management could force companies involved in the semiconductor supply chain to provide information about chip sales and inventory, Bloomberg said. U.S. Trade Secretary Gina Raimondo said in an interview yesterday that the president could use a law from the Cold War era for that.
The aim is to freeze vehicle production and remove the barriers that have caused the electronics shortage in the country. The law also allows to identify the possible accumulation of semiconductors between companies.
For several months, the trade sector held Meetings Companies affiliated with the semiconductor ecosystem for more information. So far, however, companies have refused to provide their business data to the government, which demands more transparency.
At this point, the company asks companies to fill out a form related to the production chain within the next 45 days. While this is not mandatory, Raimonto warned deputies that they could appeal to the Product Safety Act or other tools if answers are not available.
The law in question, created during the Korean War, gives the president considerable powers to control industrial production. For example, it can control the accumulation of materials.
“I said today that we are now evaluating all our options and all our tools. I hope we do not have to reach that level, but we need to see some improvement. We definitely need compliance,” the secretary said. Raimondo said there are claims of intake.
“Suppliers say, ‘We can’t get an accurate demand signal because consumers are stockpiling, so we don’t know what the exact demand number is.’ Some consumers say, ‘We can’t get direct answers from suppliers. They told me I could have X, and now they tell me X can only be half?
It is unclear how the government intends to use the law to obtain information from semiconductor manufacturers or their customers. Raimondo did not specify which companies would be affected by the move. (With international companies)
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