Subscribe
E-Paper
 |
| Samsung Electronics' chip-making plant in Hwaseong, Gyeonggi Province / Courtesy of Samsung Electronics |
By Baek Byung-yeul
Samsung Electronics will participate in a White House meeting, Monday (local time), to address the global semiconductor shortage issue.
Industry officials and analysts said Sunday that it remains to be seen whether the meeting will yield meaningful results. It also remains to be seen whether the Korean chip giant will speed up its investment plans in the United States as a result, they added.
A Samsung Electronics official confirmed that company officials will attend the meeting, but declined to elaborate. It is reported that Choi Si-young, chief of Samsung's foundry business, will attend the meeting virtually. But the Samsung official added the company cannot confirm who else will attend the meeting between executives of global companies and White House officials.
Samsung is the only Korean company to be invited to the meeting along with other big name companies such as Intel, Micron Technology, TSMC, Google, AT&T, General Motors, Ford and NXP.
White House Press Secretary Jen Psaki said the meeting will be led by National Security Adviser Jake Sullivan and National Economic Council Director Brian Deese as part of the Biden administration's efforts to resolve the shortage of semiconductors.
The meeting comes amid a worsening global chip shortage and is forecast to set the direction of the semiconductor and other industries as the U.S. places more importance on them to counter China's rising influence through technological development.
The global economy is struggling with a semiconductor shortage due to soaring demand for IT devices triggered by a surge in telecommuting and online classes due to the COVID-19 pandemic. The chip supply chain has begun to show its vulnerability as semiconductor companies have also been hit hard by bad weather and natural disasters.
The U.S. has been trying to boost local chip production to compete with China. In line with such efforts, U.S. chip giant Intel announced a $20 billion investment plan last month to build two new chip-manufacturing factories in the state of Arizona and open up its plants to outside customers.
Foundry business leader TSMC already unveiled plans last year to build a $12 billion chip plant in Arizona this year, and Samsung also has requested the authorities in Texas to grant tax incentives for over 20 years, which would be worth around $805.5 million, for its new $17 billion chip factory in Austin.
"The White House will put its priority on protecting its local industry through the meeting with officials of the companies, but the Biden administration will probably not appear empty-handed. The U.S. government will likely share opportunities and benefits for win-win outcomes," an industry analyst who declined to be named said.
