CEOs of US companies hold closed-door summit with the government, suspected of discussing investment in semiconductor plans

According to reports, on Monday local time, the heads of chipmakers GlobalFoundries and Applied Material, as well as automakers Ford Motor and General Motors, held a closed-door summit with U.S. government officials to discuss the government’s plans to invest in semiconductors.

On Tuesday, President Joe Biden will sign a bill that would provide $52 billion in subsidies for chip manufacturing and research. It also includes an investment tax credit for chip factories, worth an estimated $24 billion.

GLOBALFOUNDRIES CEO Thomas Caulfield said in a statement that the chip legislation would "accelerate domestic semiconductor manufacturing, thereby protecting the U.S. economy, supply chain and national security."

The legislation aims to ease the ongoing chip shortage that has hit the supply of goods such as cars, washing machines and video games. Thousands of cars and trucks remain parked in southeastern Michigan awaiting the arrival of chips as shortages continue to affect automakers.

Several companies said the summit will allow them to "discuss with government officials how these public investments can accelerate semiconductor and emerging technology manufacturing and support the electrification of vehicles with ready-made chip supplies."

White House National Economic Council Director Brian Deese, Undersecretary of Defense for Acquisition William LaPlante and National Security Council official Tarun Chhabra will attend the meeting.

"A reliable domestic supply of chips, including traditional semiconductors needed for the automotive and defense industries, will keep U.S. production lines running," Ford Chief Executive Jim Farley said in a statement.