Biden rushes to address computer chip shortage
President Joe Biden on Wednesday took aim at an emerging threat to the U.S. economic recovery: the global shortage of semiconductor chips that’s causing havoc within the U.S. manufacturing sector.
BIDEN: “Recently we have seen how a shortage of computer chips - computer chips like the one I have here, you can hardly see it I imagine - it’s called a semiconductor. It’s caused delays in production of automobiles that have resulted in reduced hours for American workers.”
It’s just the latest example of supply bottlenecks hurting American workers.
Biden’s executive order, signed Wednesday, launches an immediate 100-day review of supply chains for semiconductor chips, as well as large-capacity batteries for electric vehicles, rare earth minerals and pharmaceuticals.
BIDEN: “The American people should never face shortages in the goods and services they rely on, whether that’s their car, or their prescription medicines, or the food at the local grocery store.”
Earlier on Wednesday, Biden discussed supply chain issues with a bipartisan group of U.S. lawmakers, pointing to the lack of PPE the U.S. endured at the start of the health crisis.
BIDEN: “PPE we needed badly but had to go abroad to get.”
Biden has been under pressure from Republican lawmakers to do more to protect American supply chains from China's manufacturing.
U.S. semiconductor firms account for 47% of global chip sales but only 12% of production.
The chip scarcity has quickly grown into a major headache for the White House.
BIDEN: “We need to make sure these supply chains are secure and reliable.”
Ford Motor recently said a lack of chips could cut the company’s production by up to 20% in the first quarter while General Motors said it was forced to cut output at factories in the U.S., Canada and Mexico and would reassess its production plans in mid-March.
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