White House to Meet With Lawmakers About Chip Shortage

The White House didn’t comment Tuesday.

White House press secretary Jen Psaki previously said Mr. Biden would sign an executive order that would involve a comprehensive review of supply chains for critical goods, actions to improve production in the U.S., and working with allies to address bottlenecks.

A White House official previously said the administration had asked embassies to identify ways foreign countries and companies could help address the chip shortage. Among those involved are Jake Sullivan, the national security adviser, and Brian Deese, Mr. Biden’s top economic adviser.

The official said a broad review is under way to look at critical supply chains “to identify vulnerabilities and take steps, such as spurring increased U.S. domestic production, to address gaps over the long term and support good paying jobs.”

A run on chips in recent months has strained global supplies of critical components in a range of electronic devices that have been in demand as people work from home during the coronavirus pandemic. Auto makers have been especially hard hit by shortages of chips that go into numerous systems, from modules that manage engines to automatic braking and assisted driving technologies.

The shortages have forced auto plants across the world to slow down or stop assembly lines entirely as auto makers try to funnel scarce chips to their most profitable models. Volkswagen AG said in December that it was reducing output at many of its factories around the world. Shutdowns in Japan and the U.S. soon followed.

The Biden administration is facing industry pressure to act. Last week, a group of associations representing technology companies, the automotive industry and other business interests sent a letter to Mr. Biden calling it a national priority.

“To be competitive and strengthen the resilience of critical supply chains, we believe the U.S. needs to incentivize the construction of new and modernized semiconductor manufacturing facilities and invest in research capabilities,” the letter read. “We believe the need is urgent and now is the time to act.”

Bipartisan legislation is also pending on Capitol Hill. Senate Majority Leader Chuck Schumer (D., N.Y.) said Tuesday that work had begun on a package to address competition with China, noting that semiconductor production is a priority.

“You’ve all seen that auto plants throughout America are closed because they can’t get the chips,” Mr. Schumer said. “We cannot rely on foreign processors for the chips. We cannot let China get ahead of us into production.”

—Siobhan Hughes contributed to this article.

Write to Alex Leary at [email protected]