Biden Administration to Address Car Semiconductor Shortage... "Executive Order Coming Soon"

▲Jen Psaki White House Press Secretary [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Biden administration in the United States has taken action to address the semiconductor shortage crisis that has hit the global automotive industry.

On the 11th (local time), White House Press Secretary Jen Psaki stated in a briefing regarding the shortage of automotive semiconductors, "The Biden administration is currently identifying potential bottlenecks in the supply chain," adding, "We are actively collaborating with key industry stakeholders and trade partner countries to do more now."

The White House announced that President Biden is expected to sign a whole-of-government executive order within weeks to comprehensively review supply chain issues for critical materials related to this crisis.

Bloomberg News, citing a Biden administration official, reported that "the shortage of automotive semiconductors is a key reason for this executive order."

The official said, "Discussions are underway to find immediate solutions," and "We are also seeking a comprehensive strategy to address various issues such as bottlenecks that the semiconductor industry has faced in recent years."

The Biden administration has rolled up its sleeves on this issue because the semiconductor shortage has disrupted production, causing major U.S. automakers to halt operations at their plants.

General Motors (GM) has extended production cuts at three North American plants, which began this week, at least until mid-March, and the Bupyeong Plant 2 in South Korea is operating at half capacity.

Global semiconductor companies reduced automotive semiconductor production in the first half of last year due to decreased automobile demand caused by the COVID-19 pandemic, focusing mainly on producing information technology (IT) products such as PCs and smartphones.

In this situation, the U.S. semiconductor industry also sent a letter to President Biden requesting support for domestic semiconductor production, Bloomberg News reported.

Twenty-one CEOs of U.S. semiconductor companies, including Intel, Qualcomm, and AMD, asked President Biden for "substantial financial support in the form of subsidies or tax credits to incentivize semiconductor production."

According to the letter, the share of U.S. companies in global semiconductor production has dropped from 37% in 1990 to 12% recently, a reduction to one-third.

This content was produced with the assistance of AI translation services.