Biden Executive Order Targets Global Semiconductor Chip Shortage
President Biden signs a new executive order to launch a 100-day review of critical supply chains, focusing heavily on the global semiconductor shortage that disrupts U.S. auto manufacturing.
President Biden signs an executive order to address the global semiconductor chip shortage that forces U.S. automakers to halt production lines. The order launches an immediate 100-day review of supply chains for four critical products: semiconductor chips, large-capacity batteries for electric vehicles, rare earth minerals, and pharmaceuticals. Administration officials emphasize that this review leads directly to actionable steps to close identified supply gaps rather than just producing reports.
The chip scarcity creates major headaches for the White House as companies like Ford and General Motors face significant production cuts. U.S. semiconductor firms currently account for 47% of global chip sales but only handle 12% of actual production due to heavy reliance on overseas manufacturing. This decline in domestic production highlights a significant vulnerability that leaves American workers and industries at risk.
Biden addresses these concerns in a meeting with a bipartisan group of lawmakers amid growing pressure to protect American supply chains from foreign competition. The executive order also directs six broader sector reviews modeled after Defense Department processes, focusing on defense, public health, communications technology, transportation, energy, and food production. This comprehensive approach aims to prevent future supply bottlenecks that hurt American workers and industries.