Biden Orders Supply Chain Review to Tackle Global Chip Shortage
President Biden signs a new executive order initiating a 100-day review of critical supply chains, focusing heavily on semiconductors. The action aims to address severe global chip shortages that disrupt industries from auto manufacturing to medical supplies.
President Biden signs an executive order to address the global semiconductor shortage by launching a 100-day review of critical supply chains. This initial review focuses heavily on semiconductors and advanced batteries for electric vehicles, followed by a broader, long-term evaluation of six key economic sectors to generate actionable policy recommendations.
The global chip shortage severely impacts multiple industries, causing major automakers like Ford and General Motors to halt production and face significant financial losses. Bipartisan lawmakers and industry leaders warn that heavy U.S. reliance on foreign manufacturing leaves a dangerous weak spot in both the economy and national security, with the U.S. currently accounting for only 12.5% of global chip production.
Biden praises a productive, bipartisan meeting with lawmakers regarding the crisis, noting a rare moment of political cooperation. While the pandemic highlights the fragility of relying on overseas supply chains in places like China and Taiwan, some industry executives express cautious optimism that the worst of the current chip shortage may already be passing.