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CMI - Cummins Inc News Story

$265.67 2.7  1.0%

Last Trade - 14/05/21

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £27.56bn
Enterprise Value £28.73bn
Revenue £14.82bn
Position in Universe 330th / 6846

UPDATE 1-White House convening summit with top execs on chip shortage

Fri 9th April, 2021 5:34pm
(New throughout, adds more companies participating)
    By David Shepardson
    WASHINGTON, April 9 (Reuters) - Almost 20 major companies
worried about a global semiconductor chip shortage that has
roiled the automotive industry will send senior executives to a
White House summit Monday, a senior official said on Friday.
    Reuters reported earlier the summit is expected to include
General Motors  GM.N  Chief Executive Mary Barra and Ford Motor
 F.N  Chief Executive Jim Farley.
    The White House official confirmed the three largest U.S.
automakers, including Chrysler-parent Stellantis NV  STLA.MI 
will attend, as will executives from GlobalFoundries, PACCAR
 PCAR.O , NXP  NOC.N  and Taiwan Semiconductor Manufacturing
Company  2330.TW .
    The White House meeting is billed as the "CEO Summit on
Semiconductor and Supply Chain Resilience" and will include
White House National Security Advisor Jake Sullivan and National
Economic Council Director Brian Deese. As of midday Friday, 19
major companies had agreed to send executives.
    Deese said in a statement the "summit reflects the urgent
need to strengthen critical supply chains."
    Commerce Secretary Gina Raimondo will also take part.
    A U.S. auto industry group this week urged the U.S.
government to help and warned that a global semiconductor
shortage could result in 1.28 million fewer vehicles built this
year and disrupt production for another six months.
    Also taking part are AT&T  T.N , Samsung  005930.KS ,
Google-parent Alphabet  GOOGL.O , Dell Technologies  DELL.N ,
Intel Corp  INTC.O , Medtronic  MDT.N , Northrop Grumman
 NOC.N , HP  HPQ.N  Cummins  CMI.N  and Micron  MU.O .
    "Trying to address supply chains on a crisis-by-crisis basis
creates critical national security vulnerabilities," Sullivan
said in a statement.
    Broadband internet, cellphone and cable TV companies also
face delays in receiving "network switches, routers, and
servers. ... Shortages in semiconductors and the associated
delays will result in hundreds of millions of dollars in impact
to the broadband and cable television industry this year," an
industry group said this week.
    President Joe Biden wants at least $100 billion to boost
U.S. semiconductor production and fund investments to support
production of critical goods, but officials said this funding
will not address short-term chip needs.    
    On Thursday GM and Ford both announced new vehicle
production cuts on Thursday.

 (Reporting by David Shepardson
Editing by Chizu Nomiyama and David Gregorio)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))
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