Biden hopes to fix the shortage of semiconductor chips
Biden hopes to fix the shortage of semiconductor chips

The White House is committed to helping solve the global shortage of semiconductor chips. President Joe Biden (Joe Biden) announced that he will sign a decree to review the supply chain and develop a long-term strategy to prevent future bottlenecks.

The reason for the current shortage is a combination of factors:

  •     Due to the lifestyle changes brought about by the coronavirus pandemic, the demand for consumer electronics is high.
  •     Due to the effects of the coronavirus pandemic, production of semiconductor chips has slowed.
  •     Most of the companies are outsourcing chip production like TSMC (TSMC) rather than manufacturing the parts themselves.
  •     The continuing effects of former President Trump's trade war with China have made it difficult for US companies to partner with Chinese chipmakers.

As a result, companies like Apple, Qualcomm and Sony have reported all of the aforementioned bottlenecks in the past few weeks, ranging from partial bottlenecks on iPhones to difficulty finding the PlayStation 5 platform or the latest AMD processors and GPUs.

In an increasingly interconnected world, the shortage of semiconductor chips not only affects traditional technology industries, but extends to a variety of other industries as well.

In the past few months, several automakers, including Volkswagen, Fiat Chrysler and Toyota, have been forced to temporarily halt car production.

To this end, it has been reported that the Biden administration is working with companies and business partners to resolve some of these issues.

While it is wonderful that the United States government hopes to solve this problem, the limited US involvement in the manufacture of physical semiconductors makes the actual pathway to fix this problem uncertain.

Semiconductor industry associations, including AMD, IBM, Intel, Nvidia, Qualcomm and others, presented an idea in a letter to Biden.

The organization is urging the government to include large sums of money in the next stimulus package for semiconductor manufacturing incentives in the form of subsidies or tax credits, as well as basic and applied research. However, it is not known whether the government intends to do so.

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