The Biden government is looking at ways in which to solve the increasingly serious shortage of semiconductors. The United States government is looking for short and long-term solutions.
In the short term, the focus will be on bottlenecks in the potato chip supply chain, Jane Psaki, a White House spokesman, told Bloomberg. In the long run, policymakers are looking for ways to solve the inherent problems that chip manufacturers have faced for years.
Joe Biden is expected to sign an order to begin an investigation for 100 days. The National Economic Council and National Security Council will consider manufacturing of semiconductors, critical metals, medical supplies, and large batteries such as those found in electric cars.
A group of 21 companies sent a letter to the US President urging him to provide strong support for domestic semiconductor manufacturing. The letter was signed by CEOs of Intel, Qualcomm and AMD, among others.
Companies are concerned that the United States will fall behind in producing microchips. They point out that the United States was still responsible for 37 percent of chip production in 1990, while it is only 12 percent today.
Only chip designers can turn to Taiwanese TSMC and South Korean Samsung to produce their latest microchips. These companies are increasingly moving their production to China. However, tensions between the United States and China could lead to chip shortages.
And this chip shortage is definitely there. Both TSMC and Samsung are struggling to keep up with the current demand for semiconductors and car manufacturers also complain that they cannot get the necessary parts for their cars. Some car manufacturers feel compelled to shut down production lines temporarily because they simply cannot get the parts to finish their cars.
Hint: Samsung: The lack of chips in cars can also affect smartphones