Biden Signs Executive Order calling for Semiconductor Supply Chain Review

Biden Signs Executive Order calling for Semiconductor Supply Chain Review

  • Feb 25, 2021

President Biden has signed another executive order addressing growing concern over a global semiconductor shortage. Production of goods such as automobiles and smartphones, would be affected.

The government is expected to conduct 100-day reviews of supply chains in four sets of products, including computer chips and large capacity batteries, like those used in electric vehicles, according to administration officials.

At a press conference, Biden said he wants to make sure the United States can meet every challenge in “this new era of pandemics, but also in defense cybersecurity and climate change.” Biden also the best way to do that is by protecting and sharpen America’s competitive edge by investing here at home.

A number of pandemic related issues has created the chip shortage. As more of daily life moved online, consumer electronics manufacturers saw an increase in demand for products like laptops. Production of chips also slowed down in part because of the pandemic, and former President Trump’s trade war with China made it more difficult for U.S. companies to work with Chinese chip producers.

Apple, AMD, Sony, and Qualcomm raising concern over shortages over the last few weeks, including parts for iPhones and consoles like the PlayStation 5.

Earlier this month, lobbying groups for the auto, telecommunications, and technology industries called on the White House to work with Congress to provide additional funding for domestic chip research and production.

Senate Majority Leader Chuck Schumer (D-NY) said in a Wednesday press conference that Congress would be working to draft a legislative package to “outcompete China and create new American jobs.” He also said the United States would be making new investments in the U. S. semiconductor industry. Schumer said a floor vote should be expected in the Senate this spring.

“Right now, semiconductor manufacturing is a dangerous weak spot in our economy and in our national security, that has to change,” Schumer said on Wednesday. “We cannot let China get ahead of us in chip production.”

Outside of the semiconductor supply chain, Biden’s order also calls for similar reviews into the defense, public health, biological preparedness, information communications technology, transportation, and energy and food production sectors, the administration officials said.

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