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Biden administration promises aggressive action

President Joe Biden is expected to sign an executive order ordering a government-wide supply chain review for essentials in the coming weeks. The shortage of chips is a central reason for the order.

On Thursday, CEOs of chip companies including Intel Corp., Qualcomm Inc. and Advanced Micro Devices Inc. wrote to the president urging him to support domestic production and prevent the country from losing its lead in innovation.

The executives, who sit on the board of directors of the Semiconductor Industry Association, asked Biden to include “substantial funding for incentives for semiconductor manufacturing, in the form of grants and / or tax credits “in its recovery and infrastructure plans.

The letter, signed by 21 CEOs, including Bob Swan of Intel Corp., Steve Mollenkopf of Qualcomm Inc. and Lisa Su of Advanced Micro Devices Inc., pointed out that the country’s global share in chip manufacturing has fallen to 12% against 37% in 1990..

The US companies mainly subcontract production to Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. of South Korea. It is becoming a national security issue as tensions rise between the United States and China, which is investing heavily to develop its own chip industry.

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