Biden preaches investment to US executives, addresses semiconductor shortage
But industry experts say there's little they can do to stem the shortage, which has delayed a new iPhone and forced automakers to temporarily shut factories.
Technology / IIoT
President Joe Biden used a virtual meeting with corporate leaders about a global shortage of semiconductors to push Monday for his $2.3 trillion infrastructure plan, telling them that the U.S. should be the world’s computer chip leader.
“We need to build the infrastructure of today, not repair the one of yesterday,” he told the group of 19 executives from the technology, chip and automotive industries. “China and the rest of the world is not waiting and there’s no reason why Americans should wait.”
He said the country hasn’t made big investments to stay ahead of global competitors, and it needs to step up its game.
Biden made an appearance at the meeting between administration officials and company leaders held to discuss developing a stronger U.S. computer chip supply chain. The meeting came as the global chip shortage continued to plague a wide array of industries.
CEOs of AT&T, Dell, Ford, General Motors, Stellantis (formerly Fiat Chrysler), Intel, Northrop Grumman, and others were scheduled to attend.
But industry experts say there’s little they can do to stem the shortage, which has delayed a new iPhone and forced automakers to temporarily shut factories because they’re running short of the multiple computers needed to run engines, transmissions, brakes and other essential features.
Instead, Biden brought up developing a U.S. chip supply chain since most are made in Asia and shipped to the U.S. In February he ordered a review of the supply chain and pledged to work with international partners to ensure stable supplies.
Things have also worsened in recent weeks, particularly in the auto industry, where factories are shutting down because there aren’t enough chips to finish building vehicles that are becoming rolling computers.
The U.S. has only 12% of the world’s semiconductor factory capacity, down from 37% in 1990, according to the Semiconductor Industry Association.
The shortage comes just as the auto industry is accelerating plans to shift away from internal combustion vehicles, shifting more toward those powered by batteries.
As part of his $2.3 trillion infrastructure plan, Biden wants to spend $174 billion over eight years on electric vehicles. That figure includes incentives for consumers, grants to build 500,000 charging stations, and money to develop U.S. supply chains for parts and minerals needed to make batteries. Biden also wants Congress to put $50 billion into semiconductor manufacturing and research.