The request from TSMC, the world's biggest manufacturer of semiconductors on contract, coincides with a global chip shortage that has slowed production of manufacturers around the world, including in the U.S. auto industry where it is forecast the crisis will hit the production of 3.9 million vehicles. Raimondo has a key role in resolving the crisis for U.S. companies.
Although there has been no major impact so far on chip production in Taiwan since domestic cases began rising in the middle of May, some U.S. auto executives have told Reuters privately earlier this month they were concerned COVID-19 in Taiwan could impact the flow of semiconductors to U.S. factories.
Q. And there’s this critical meeting today on this sort of, you know, trade council with Taiwan. Is there any suggestion at all that the U.S. decision to provide as many vaccine doses as were provided to Taiwan is in some way a quid pro quo to get access to semiconductors from Taiwan?
MS. PSAKI: There should not be that suggestion. I will note that they were being cut off from access to vaccines. So that was a factor.