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Biden to sign executive order to address global semiconductor chip shortage

By Caoimhe Toman

Date: Wednesday 24 Feb 2021

LONDON (ShareCast) - (Sharecast News) - President Joe Biden is set to sign an executive order on Wednesday to address a global semiconductor chip shortage that has automakers around the world, including those in the US, forced to cut production.
The shortage, which was caused in part by the ongoing coronavirus pandemic, will be discussed by the President in a meeting with a bipartisan group of lawmakers.

However, the executive order that was to be signed later that same Wednesday would trigger an immediate 100-day review of supply chains for four critical products: semiconductor chips, large-capacity batteries for electric vehicles, rare earth minerals and pharmaceuticals.

Production of computers, smartphones and automobiles had also been impacted by the insufficient supply of chips with some companies having even been forced to resort to layoffs on their production lines.

"Make no mistake, we're not simply planning to order up reports. We are planning to take actions to close gaps as we identify them," a US administration official said, according to Reuters.

US semiconductor firms account for 47% of global chip sales but only 12% of production, due to the mass outsourcing of manufacturing overseas.

Under Biden's order, the White House will look to diversify the United States' supply chain dependence for specific products on inputs from overseas.