Biden also signed an executive order on Wednesday aimed at
addressing the global semiconductor chip shortage that has alarmed the White
House and members of Congress, administration officials said.
The scarcity, exacerbated by the pandemic, was also the subject
of a discussion between Biden and a bipartisan group of U.S. lawmakers at the
White House on Wednesday.
"I'm directing senior officials in my administration to
work with industrial leaders to identify solutions to the semiconductor
shortfall," Biden said on Wednesday. "Congress has authorized a bill
but they need ... $37 billion to make sure that we have this capacity. I'll
push for that as well.”
The White House said his remarks were in reference to
measures aimed at boosting chip manufacturing capacity that were included in
this year's National Defense Authorization Act but which require a separate
appropriations process to garner funding.
The chip industry has pressed the Biden administration and
Congress to take action to fund the provisions of the law. "We urge the
president and Congress to invest ambitiously in domestic chip manufacturing and
research," the Semiconductor Industry Association (SIA) said earlier on
Wednesday.
Biden's executive order launched a 100-day review of supply
chains for four critical products: semiconductor chips, large-capacity
batteries for electric vehicles, rare earth minerals and pharmaceuticals.
The order also directs six sector reviews, modeled after the
process used by the Defense Department to strengthen the defense industrial
base. It will be focused on the areas of defense, public health, communications
technology, transportation, energy and food production.
The United States has been besieged by supply shortages
since the onset of the pandemic, which squeezed the availability of masks,
gloves and other personal protective equipment, hurting frontline workers.
The chip shortage, which in some cases is forcing automakers
to take employees off production lines, is the latest example of supply
bottlenecks.
"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," an administration official previewing the executive order said.
Democratic lawmakers present at Wednesday's meeting were Senators
Mark Warner, Tammy Baldwin, Tammy Duckworth and Maggie Hassan along with
Representative Doris Matsui. The Republicans comprised Senators John Cornyn,
Mike Braun, Marsha Blackburn, Rob Portman and Representatives John Joyce and
Michael McCaul.
PRODUCTION CUTS
Ford Motor Co said a lack of chips could cut the company's
production by up to 20% in the first quarter. General Motors Co said it was
forced to cut output at factories in the United States, Canada and Mexico and
would reassess production plans in mid-March.
Ford praised Biden's plan on Wednesday and said in a
statement that it was "incredibly important for our labor force, our
customers and our business that we have a commitment to end this shortage as
soon as possible."
U.S. semiconductor companies account for 47 percent of
global chip sales, but only 12 percent of global manufacturing is done in the
United States, according to the Semiconductor Industry Association.
Biden has been under pressure from Republican lawmakers to
do more to protect American supply chains from China by investing in domestic
manufacturing of next-generation semiconductor chips.
"I strongly urge Biden administration to prioritize
protecting emerging and critical technologies, like semiconductors, from the
grasp of the CCP (Chinese Communist Party)," McCaul said in a recent
letter.
Under Biden's order, the White House will look to diversify
the country's supply chain dependence for certain products, by developing
domestic production and partnering with other countries in Asia and Latin
America when it cannot produce products at home.
The review will also look at limiting imports of certain
materials and training U.S. workers.
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