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Biden Says They Will Fix CPU Shortage Problems

According to a new statement from US White House press secretary Jen Psaki, the Joe Biden administration is “identifying the bottleneck points in the semiconductor supply chain and is actively working together with key parties. industry and business partners to try to fix it. ‘ Will they get it?

The US intends to end the shortage of CPUs, GPUs and consoles

Along with these statements, the press secretary also said that Biden intends to sign an executive order in the coming weeks that will lead a comprehensive review of problems in the supply chain for critical products, including the very basis: chips.

Two people familiar with the details of this alleged review have claimed that it will last 100 days and will be led by the National Economic Council and the National Security Council. Plans focus on the manufacture of semiconductors and advanced encapsulation methods, as well as minerals and critical raw materials, medical supplies and high-capacity batteries such as those used in electric vehicles.

The American auto industry will also benefit from a broader supply of chips, and the United Auto Workers union issued its own statement on the matter saying that we also ask the Biden management and board to develop business and policy solutions that ensure that advances in technology may continue. ‘ The statement follows a January 19 letter in which the union asked Biden’s management to consider urging major semiconductor foundries to increase production (we’ve already talked about this in the past and the problem is that by far they want, their production capacity is already at 100%).

Creating a “TSMC” in the US, the solution to all ills?

National security is also one of the concerns of the US government, especially given the increase in trade tensions between the United States and China over the past year; Although TSMC is based in Taiwan, the political situation between Taiwan and China is equally tense.

China Semiconductors

Other measures are underway in the semiconductor industry as well, with a letter sent to the president signed by none other than the CEOs of Intel, AMD and Qualcomm, urging their administration to increase government support for domestic production. chips, a longstanding challenging issue due to foreign subsidies to R&D and chip manufacturing plants.

This in itself is quite illuminating, given that both AMD and Qualcomm rely on foreign partners like TSMC for the production of their products. Another 18 CEOs signed the letter, noting that America’s share of chip manufacturing has dropped 12% since 1990. Specific demands in the letter include “substantial funding to incentivize semiconductor manufacturing, in form of subsidies and / or tax credits ».

While it appears that much of the lobby pressure facing the Biden administration is focused on bringing chip production to the realm of American companies, it is also possible that the president’s solutions, who seek greater immediacy, will go through leveraging. the previous administration’s work with TSMC to build a factory on its national soil.

Will all of this solve chip shortage problems for GPUs, CPUs, and consoles? In the short term of course not, but if at least they manage to prevent the situation we are experiencing from repeating itself, we will have already won enough.