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US President ordered to deal with the deficit in the semiconductor industry
US President Joe Biden signs a decree to address the global semiconductor shortage. As you know, the current situation with the supply of chips hit many sectors of the economy, including the American one, affecting not only the manufacturers of computers and smartphones, but also, for example, automakers. America is faced with a systemic problem, and it seriously alarmed President Biden.
Signed decree kicks off 100-day federal supply chain survey of four important product categories, including semiconductor chips and high-capacity batteries for electric vehicles.
The United States has been experiencing a shortage of certain foods since the beginning of the pandemic. For example, at the beginning of the pandemic, America experienced problems with the supply of personal protective equipment such as masks and gloves. The chip shortage is just another example of the supply problems plaguing the US economy. A spokesman for the Biden administration said that as the initiated investigation identifies deficiencies in supply chains, the necessary measures will be taken to correct them.
Overall, Biden’s decree aims to reduce US dependence on China for specific products such as semiconductor chips. According to the US President, it is the shortage of chips that has created a very serious problem in the economy. Biden said his administration will work with industry leaders to find solutions to close the deficit.
“The point is that the United States must address all the challenges we face in this pandemic era, which also includes cybersecurity, climate change and more,” Biden said at a press conference. «The best way to do this is to protect and enhance America’s competitive advantage by investing in our own market.».
Representatives of Congress expressed their readiness to bring up a bill that will allow the United States to «surpass China and create new jobs», as well as direct investment in the American semiconductor industry. As one of the senators commented on the decree, now semiconductor production is a dangerous weak point in the US economy and national security, and this needs to be changed. China, according to lawmakers, should not overtake America in the production of chips.
According to the Semiconductor Industry Association, American semiconductor companies account for 47% of the world’s chip supply, but only 12% of chips are manufactured in the United States, since most of the products are manufactured abroad. For example, in 1990, the United States accounted for 37% of world semiconductor production.
Along the way, the decree initiates an analysis of six sectors, such as defense, health, communications technology, transport, energy and food production. The analysis will be modeled on the process used by the US Department of Defense to strengthen the defense industry.