Multinational technology company Intel is reportedly in talks to produce semiconductor chips for automakers to help alleviate the ongoing global semiconductor chip shortage, which has affected production across the automotive industry, including General Motors.
According to a recent report from Reuters, Intel CEO Pat Gelsinger said that the technology company was currently in talks with companies that design chips for automaker, with the intention of leveraging Intel’s factory network to begin manufacturing the chips in the next six to nine months.
“We’re hoping that some of these things can be alleviated, not requiring a three- or four-year factory build, but maybe six months of new products being certified on some of our existing processes,” Gelsinger said. “We’ve begun those engagements already with some of the key components suppliers.”
Geslinger reportedly met with White House officials this week to discuss the semiconductor supply chain. Last week, President Biden indicated that U.S. Senate leaders would soon introduce new legislation to address the ongoing shortage. In February, President Biden signed an executive order for $37 billion in funding to support semiconductor chip manufacturing in the U.S.
Recently, the Alliance for Automotive Innovation, a trade group representing a variety of major automotive manufacturers and suppliers, including General Motors, urged the U.S. government to address the shortage, asking in a letter to build new capacity that will support the industry and mitigate risks to the supply chain.
According to the recent Reuters report, Geslinger has indicated that Intel would open its existing factory network to provide more immediate relief for auto companies impacted by the semi-conductor shortage.
Some estimates put GM’s impacted production numbers at 60,000 fewer new GM vehicles built in North America alone, with 216,000 fewer GM vehicles built globally. General Motors has indicated that the shortage could eat into its earnings this year by as much as $2 billion.
General Motors recently announced that it would idle production at its Lansing Delta Township facility in Michigan and Spring Hill Assembly facility in Tennessee as a result of the shortage. The production cuts are just the latest in a series of production impacts resulting from the shortage.