President Biden to take steps to ease semiconductor shortage in the US

Shane McGlaun - Feb 12, 2021, 6:21am CST
President Biden to take steps to ease semiconductor shortage in the US

Currently, there’s a global shortage of semiconductors used in many industries that has seen some major industries in the US grind to a halt. The semiconductor shortage has particularly hit automakers in America hard, causing several major companies to cease production. The Biden administration has promised to make aggressive moves to address the global semiconductor shortage.

Part of the administration’s plan is to identify bottlenecks in supply chains and develop an immediate path forward for businesses and trading partners. Policymakers are also looking for long-term solutions with a comprehensive strategy meant to avoid bottlenecks and other issues that have significantly impacted the semiconductor industry over several years. One step Biden is expected to take is the signing of an executive order instigating a government-wide supply-chain review for critical goods.

The chip shortage is reportedly the main concern behind instigating the probe. It’s unclear when the supply chain review will commence, but it’s said to begin in the coming weeks. Biden’s executive order also compel a 100-day review led by the National Economic Council and National Security Council that is focused on advanced packaging and semiconductor manufacturing. The review will also focus on critical minerals, medical supplies, and high-capacity batteries for EVs.

Information on what exactly the review will encompass hasn’t been made public at this time, but details have surfaced from people claiming to be familiar with the draft. More assessments on the supply chain will be made within a year focused on key products, materials, technology, and infrastructure. Other materials required for defense, public health, telecommunications, energy, and transportation will be focused on in the assessments as well.

This week multiple CEOs of chip manufacturing companies like Intel, Qualcomm, and AMD wrote letters to Biden urging him to support domestic production to stop the US from losing out when it comes to innovation. The executives are asking for incentives for semiconductor manufacturing in the US with grants or tax credits.


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