Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. says firms may meet chip data request amid Taiwan, S.Korea concerns

Published 10/21/2021, 11:36 PM
Updated 10/22/2021, 10:16 AM
© Reuters. Visitors are seen at the Intel booth during the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021.  REUTERS/Aly Song

© Reuters. Visitors are seen at the Intel booth during the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021. REUTERS/Aly Song

LONDON (Reuters) -The U.S. Commerce Department said on Thursday companies such as Intel (NASDAQ:INTC) and Infineon (OTC:IFNNY) had signaled they would cooperate with a voluntary request for data on the chips crisis, but may make it compulsory depending on the number and quality of responses.

The White House made the request to automakers, chip companies and others last month, saying the information would boost supply-chain transparency and help understand where bottlenecks exist. The deadline for firms to respond is Nov. 8.

"Companies including Intel, GM, Infineon, and SK Hynix, have indicated that they plan to be very forthcoming with their data. We are very appreciative of their efforts and encourage other companies to follow suit," a Commerce spokesperson told Reuters.

"The (request for information) is voluntary, but this information is crucial to addressing concerns about transparency in the supply chain. Whether or not we have to use compulsory measures depends on how many companies engage and the quality of the data shared."

The request has caused concern in Taiwan that companies such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker and a major Apple Inc (NASDAQ:AAPL) supplier, would have to hand over sensitive data. TSMC said earlier this month it would not leak any sensitive company information.

TSMC said in a statement to Reuters it is preparing and will respond to the U.S. request for information.

"TSMC has been actively supporting and working with all stakeholders to overcome the global semiconductor supply challenge," it said.

"Looking forward, to increase the demand visibility in this complex supply chain should be the path to avoid such shortages from happening in the future. We have been a strong partner in this effort and will continue taking actions to address this challenge."

A GM spokesperson confirmed the Commerce Department statement, saying the company "will submit data within the requested timeframe," while Infineon declined to comment on "ongoing communications with governments." Intel and SK Hynix did not immediately respond to requests for comment.

South Korea's trade ministry has also expressed concern over the request.

"The scope of the requested data is vast and a number of operational secrets are included, which is a big concern in South Korea," it said in an Oct. 6 statement.

© Reuters. Visitors are seen at the Intel booth during the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021.  REUTERS/Aly Song

However, South Korea's trade minister, Moon Sung-wook, told a parliamentary committee on Thursday that companies were preparing to review and submit data that can be provided without violating contractual confidentiality provisions or domestic laws.

Automakers, including GM, Toyota Motor (NYSE:TM) Corp and Renault (PA:RENA), have slashed output and sales forecasts due to scarce chip supplies, made worse by a COVID-19 resurgence in key Asian semiconductor production hubs.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.