Global Chip Shortage Becomes Joe Biden Government's Attention, New Rules Will Soon
A global chip shortage could affect the US economy. (photo: doc. unsplash)

JAKARTA - The US Commerce Department is expected to release details of a semiconductor chip study conducted last year amid a push to win funding to boost US manufacturing from Congress.

In September, the department asked semiconductor chip makers and other companies in the supply chain to voluntarily submit data amid a chip shortage that has curtailed car production worldwide.

The department also said it had accepted the cooperation but had not released details. Car and chip makers have warned supply shortages could last until at least 2023.

On Monday, January 24, the US Commerce Department sought input on planning a potential program to encourage government investment in semiconductor manufacturing and research.

"The United States faces an immediate supply shortage that raises prices and a long-term threat to the American economy and national security if we don't increase our domestic supply of chips," Commerce Secretary Gina Raimondo said Monday, Jan. 14, as quoted by Reuters.

Chrysler parent Stellantis also said last Friday it was halting production this week at its Windsor Assembly Plant in Ontario where it builds minivan-type cars due to a chip shortage.

House Democrats were expected earlier this week to introduce legislation aimed at increasing US competitiveness with China and spending $52 billion on semiconductor production and research, after the Senate approved funding in June.

US House Speaker Nancy Pelosi last week said the bill would appear "soon" and a vote on the House floor was expected in February, the source said.

US President Joe Biden has also pressured Congress to approve more funding to increase chip production in the United States as shortages of key components used in cars and computers have exacerbated supply chain bottlenecks. The US economy could be disrupted by it.

On Friday January 21, Intel also announced plans to invest $20 billion and build two new chip plants in Ohio, while Samsung Electronics in November selected Taylor, Texas to build a new $17 billion plant to make advanced chips.


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