Because the shortage of semiconductor chips has forced U.S. automakers and other manufacturers to cut production, U.S. President Biden signed an executive order on the 24th to promote the development of the U.S. chip manufacturing industry.
The executive order signed by Biden kicks off a 100-day project to review the supply chain of four key products, Reuters reported.
The subjects of review include semiconductor chips, large-capacity batteries of electric vehicles, rare earth minerals and pharmaceuticals.
Under the Executive Order, the United States will promote the domestic production of the above-mentioned key products and cooperate with countries in Asia and Latin America when it is impossible to produce a product domestically to diversify the supply chain of these products.
In addition, Biden will seek congressional legislation to obtain financial support to promote the development of semiconductor chips.” Senior officials of this administration will work with industry leaders to find solutions to the shortage of semiconductor chips.
Congress has approved a bill, but they need $37 billion to ensure we have this ability (increase production). I will also push for this bill.
Meanwhile, the chip industry has also urged the Biden administration and Congress to take action to push for the bill to raise funds.” We urge the president and Congress to actively invest in domestic chip manufacturing and research.” The American Semiconductor Industry Association (SIA) said on the 24th.
According to the SIA, U.S. semiconductor companies account for 47% of global chip sales, but only 12% of global production, because the United States outsources most of its manufacturing overseas.
In 1990, the United States accounted for 37% of global semiconductor production.
Reuters reported that since the outbreak of the novel coronavirus, the United States has been facing a shortage of masks, gloves and other personal protective equipment, causing harm to front-line workers.
And the shortage of chips is the latest example of this supply bottleneck. In some cases, chip shortages have forced car manufacturers to cut employees from production lines. U.S.
automaker General Motors said on the 10th of this month that the global shortage of semiconductor chips may reduce its profits to $2 billion in 2021.