US Pushes for Manufacturing Revival... Biden Administration Establishes Semiconductor and Battery Supply Strategy

[Image source=AP Yonhap News]

[Asia Economy Reporter Yuri Kim] The Biden administration in the United States is devising a new supply chain strategy for key industries such as semiconductors and electric vehicle batteries to revive manufacturing. The plan aims to reduce dependence on countries that do not meet U.S. standards, such as China, and secure stable supply chains within the U.S. or through allied countries.

According to foreign media including The Wall Street Journal (WSJ), the U.S. government is expected to announce new measures on the 8th (local time) to address broad supply chain issues. In February, President Joe Biden ordered a 100-day review to identify vulnerabilities in major sector supply chains after the COVID-19 pandemic affected automobile manufacturing and other industries.

The goal is also to revive U.S. manufacturing and reduce overseas dependence on critical minerals used in electric vehicle batteries. The 100-day review was divided into four sectors: semiconductors, large-capacity batteries used in automobiles, pharmaceuticals, and rare earth elements essential for technology and defense.

The White House announced on the day that "decades of underinvestment and policy decisions have led to vulnerable supply chains across various sectors and products." Based on this review, the Departments of Commerce, Transportation, and Agriculture plan to establish new supply chain task forces in sectors such as construction, semiconductors, transportation, and food, where supply disruptions and demand issues have occurred.

A public-private consortium for the production of essential medicines will also be formed using the Defense Production Act. The Department of Health and Human Services plans to initially provide $60 million (approximately 6.7 billion KRW) in support for this effort.

The Department of Energy will promote investment in advanced vehicle battery cell production and the establishment of new manufacturing plants by utilizing its loan authority.

Measures to counter unfair foreign trade practices such as government subsidies and to strengthen cooperation with allied countries include the proposal to establish a "trade strike force." A new financial program supporting U.S. manufacturing facilities and infrastructure projects will also be created under the U.S. Export-Import Bank.

The White House acknowledged that China is the largest processor of electric vehicle battery minerals but stated that efforts to reduce dependence will be intensified. The White House said, "Supply chains must be diversified away from hostile countries and those with environmental and labor standards unacceptable to the United States."

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