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CMI - Cummins Inc News Story

$260.97 5.4  2.1%

Last Trade - 05/05/21

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £27.44bn
Enterprise Value £28.64bn
Revenue £15.03bn
Position in Universe 339th / 6849

UPDATE 1-White House to zero in on chip shortage in meeting with company officials

Mon 12th April, 2021 4:58pm
(Adds investment plans, quote from administration official)
    By Nandita Bose
    WASHINGTON, April 12 (Reuters) - U.S. President Joe Biden
will urge Congress to invest $50 billion in semiconductor
manufacturing and research when he meets with top executives
from nearly 20 major companies on Monday about the global chips
shortage that has roiled the automotive industry and technology
firms.  urn:newsml:reuters.com:*:nL1N2M22TZ
    The push is part of his broader focus on rebuilding U.S.
manufacturing as a powerhouse for the world's largest economy -
and a source of good-paying jobs - after years of declining
investments and productivity growth, a senior administration
official said.
  The White House meeting is billed as the "CEO Summit on
Semiconductor and Supply Chain Resilience" and will include
White House national security adviser Jake Sullivan and National
Economic Council Director Brian Deese.
    Biden is expected to stop by the meeting to push his $2
trillion infrastructure plan, which includes $300 billion aimed
at expanding manufacturing, especially in disadvantaged areas
and communities of color through loans, grants, investments and
the targeted use of federal procurements.  urn:newsml:reuters.com:*:nL1N2M51IN
    While the proposed investments will take time to implement,
the administration is also seeking "short-term and medium-term
solutions that will be discussed during the summit," the
official said. No further details were immediately available.
    As of midday Friday, 19 major companies had agreed to send
executives, including General Motors  GM.N  Chief Executive Mary
Barra, Ford Motor  F.N  Chief Executive Jim Farley and
Chrysler-parent Stellantis NV  STLA.MI  CEO Carlos Tavares.
    The "summit reflects the urgent need to strengthen critical
supply chains," Deese said in a statement. 
    Commerce Secretary Gina Raimondo will also take part, as
well as executives from GlobalFoundries, PACCAR Inc  PCAR.O ,
NXP and Taiwan Semiconductor Manufacturing Co  2330.TW , 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 , Hewlett Packard Enterprises
 HPE.N , Cummins  CMI.N  and Micron Technology  MU.O .
    A U.S. auto industry group this week urged the 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.
    Over the weekend, GM canceled more truck production shifts
at two U.S. plants.
    "Trying to address supply chains on a crisis-by-crisis basis
creates critical national security vulnerabilities," Sullivan
said in a statement.
    Automakers have been hit particularly hard by the global
chip shortage after many canceled orders when auto plants were
idled during the coronavirus pandemic.
    When they were ready to resume production, they found
chipmakers were busy fulfilling orders for the consumer
electronics industry, which has seen demand for premium devices
- both for work and leisure - boom as people spent more time at
home.
    Broadband internet, cellphone and cable TV companies also
face delays in receiving "network switches, routers, and
servers," according to an industry group.
    "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," the group
said last week.
    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.
    Later this week, the Senate Commerce Committee will hold its
first hearing on a bipartisan measure to bolster technology
research and development efforts in a bid to address Chinese
competition.

 (Reporting by David Shepardson and Andrea Shalal, Editing by
Rosalba O'Brien and Bill Berkrot)
 ((Chris.Sanders@thomsonreuters.com; +1 202-558-8254; Reuters
Messaging: chris.sanders.reuters.com@reuters.net))
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