US President Biden develops strategy to prevent chip shortages

US President Biden is expected to sign an executive order to investigate the cause of the current chip shortages. The government then wants to draw up a strategy to prevent a recurrence.

The US government led by President Biden wants to investigate where the bottlenecks are in the supply of chips. Bloomberg writes that on the basis of statements from the White House. The chip shortages mean, among other things, that several car manufacturers have had to put their production on the back burner.

The executive order would initiate a 100-day investigation, which would include scrutiny of semiconductor manufacturing, chip packaging, resource use and battery production for electric vehicles. In addition, there would be an investigation into the supply chain of chips, analyzing materials, technology and infrastructure.

The news came on Thursday along with a call to Biden of the Semiconductor Industry Association to invest heavily in the US semiconductor industry, so as not to fall behind Taiwan and China. The call was signed by 21 CEOs of tech companies, including Bob Swan of Intel, Lisa Su of AMD and Steve Mollenkopf of Qualcomm. The letter states that the US share of global chip production has fallen from 37 percent in 1990 to 12 percent today. This would primarily be due to subsidies that governments provide to competitors of the members of the Semiconductor Industry Association, which has made the US less favorable as a location to locate chip factories.