The president Biden administration in its first budget proposal to Congress yesterday wants to take on the semiconductor shortage head-on. The White House is calling for new funding to fight the ongoing shortage affecting tech and the manufacturing industry.
The budget request includes $150 million to fund two new manufacturing programs. One of the programs aims at targeting domestic semiconductor manufacturing. The semiconductor shortage has affected manufacturing and supply for consumer items like the PlayStation 5 and halted production at Ford assembly lines, making the products scarce and more expensive.
The global semiconductor shortage is a result of various factors blown out of proportion by the coronavirus pandemic. Due to remote work and online learning, the demand for products like laptops and other consumer electronics rose astronomically.
Also read:
– GM Confirms That It’s Building An All-Electric Version Of The Chevy Silverado Truck
– What Huawei Founder, Ren Zhengfei, Wants To Tell President Joe Biden
– Huawei Annual Report Show US Sanctions Had Little Impact On Its Revenue
The trade war with China by former President Trump’s administration also slowed down the production of these semiconductors.
As part of its efforts to deal with this, the White House and cabinet officials plan to host a virtual CEO summit on semiconductor supply chain resilience next week.
The summit’s focus will be on Biden’s job plan and ways to strengthen the semiconductor supply chain. Companies like Alphabet, AT&T, Ford, General Motors, Intel, and Samsung are expected to attend the summit.
Biden introduced the “American Jobs Plan,” as a $2 trillion infrastructure package in March 2021. The plan also included new funding to build domestic chip manufacturing capacity.
For this purpose the administration allocated over $50 billion for investment in the sector. President Biden also signed an executive order calling for government reviews into the semiconductor supply chain.
For your daily dose of tech, lifestyle, and trending content, make sure to follow Plat4om on Twitter @Plat4omLive, on Instagram @Plat4om, on LinkedIn at Plat4om, and on Facebook at Plat4om. You can also email us at info@techtalkwithtdafrica.com and join our channel on Telegram at Plat4om. Finally, don’t forget to subscribe to our YouTube channel HERE.