President Biden is expected to sign an executive order on Wednesday to address growing concerns about the global semiconductor shortages that hamper the production of goods like automobiles and smartphones.
The White House executive order will direct the federal government to conduct 100-day supply chain reviews on four sets of products, including computer chips and large-capacity batteries, such as those used in electric vehicles, according to management officials.
The lack of chips was the result of several factors created by the coronavirus pandemic. As everyday life went online, consumer electronics manufacturers saw an increase in demand for products like laptops. Chip production has also declined in part because of the pandemic, and former President Trump’s trade war with China has made it more difficult for American companies to work with Chinese chip producers.
This has resulted in companies like Apple, AMD, Sony and Qualcomm raising concerns about scarcity in recent weeks, including parts for iPhones and consoles like the PlayStation 5.
Earlier this month, lobby groups for the automotive, telecommunications and technology sectors asked the White House to work with Congress to provide additional funding for domestic chip research and production.
“Semiconductors play a critical role in enabling products and services that fuel our economy, contribute to American innovation and increase our national security,” the groups said in a letter to Biden last week. “Given the central role of semiconductors, strengthening the US position in semiconductor research, design and manufacturing is a national priority.”
At a news conference on Wednesday, Senate majority leader Chuck Schumer (D-NY) said that Congress would be working to draft a legislative package to “overcome competition from China and create new American jobs”, as well as making new investments in the U.S. semiconductor industry. Schumer said he plans to present these items for a vote in the Senate this spring.
“At the moment, semiconductor manufacturing is a dangerous weak point in our economy and national security, which needs to change,” said Schumer on Wednesday. “We cannot let China get ahead of us in chip production.”
Outside the semiconductor supply chain, Biden’s order also requires similar analyzes in the defense, public health, biological preparation, information communication technology, transportation and energy and food production sectors, government officials said.
Biden is expected to sign the order on Thursday afternoon.