Joe Biden’s US administration is responding to the semiconductor shortage that has hit the global automotive industry.
“The Biden administration is looking for a potential bottleneck in the supply chain,” said White House spokesman Jen Saki at a briefing at a briefing on the 11th (local time). “To do more, “We are actively working with our trading partners.”
The White House said that President Biden will sign a pan-government executive order in the coming weeks to comprehensively review the issue of supply chains for critical supplies.
The shortage of automotive semiconductors was a key reason for this executive order, an official from the Biden administration told Bloomberg.
The official said that while discussions are underway to come up with an immediate solution, they are also looking for a comprehensive strategy to solve several problems such as bottlenecks that the semiconductor industry has faced in recent years.
The Biden administration’s armed force on this issue is that a shortage of semiconductors is causing production disruptions, such as shutting down factories by major US automakers.
General Motors (GM) extended production cuts at its three North American plants, which started this week, to at least mid-March, and the second plant in Bupyeong, Korea, is only in operation at half the scale.
This is the aftermath of global semiconductor companies reducing production of semiconductors for vehicles and mainly focusing on production of information technology (IT) products such as PCs and smartphones as demand for automobiles decreased due to the novel coronavirus infection (Corona 19) in the first half of last year.
In this situation, the US semiconductor industry also sent a letter to President Biden asking for support for domestic semiconductor production, Bloomberg News reported.
21 CEOs of US semiconductor companies, such as Intel, Qualcomm, and AMD, asked President Biden for “significant financial support for semiconductor production incentives in the form of subsidies or tax credits.”
According to the letter, the share of U.S. companies in global semiconductor production has dropped from 37% in 1990 to 12% in recent years, a third.
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