Biden’s $37B Chip Stimulus Executive Order Could Help GPU And Console Shortages
Since the launch of new CPUs, GPUs, and consoles late last year, chip supply has certainly struggled to keep up with demand. This supply issue is due in part to an ongoing semiconductor shortage which is not showing signs of stopping any time soon. To look for solutions, President Joe Biden is stepping in to review the semiconductor supply chain ecosystem and hopefully fund increased manufacturing capacity in the United States.
The COVID-19 pandemic has ultimately wreaked havoc across many industries, leading to a trickle-down effect of shortages and delays in production. Subsequently, there has been pressure on the Biden administration, from both the GOP and other organizations, to take a look at and improve the semiconductor supply chain. Multiple industries have been affected by the shortages ranging from the tech space -- GPUs, processors, and game consoles like the Xbox Series X and PlayStation 5 -- to even automobiles. It's easy to forget that modern cars and trucks are rolling computers that feature multiple powerful chips to run infotainment duties, self-driving functionality, and even for engine control management. Earlier this month, the Semiconductor Industry Association explained that "the Biden administration and Congress need to work together and provide substantial funding to bolster U.S. chip manufacturing and research."
In response to the calls to secure U.S. supply chains, Reuters reported that President Biden has signed an executive order which launches "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 President has since explained that he is "directing senior officials in my administration to work with industrial leaders to identify solutions to the semiconductor shortfall" and is now pushing for $37 billion in funding to bolster semiconductor production capacity.
While the semiconductor shortages have been felt at home by many, it is a global shortfall that President Biden's executive order will hopefully address. Moreover, stabilizing manufacturing and production capacity before we enter a post-coronavirus world will be critical to maintaining a healthy economy in the United States.