A worldwide shortage of semiconductors has been plaguing the automotive industry since the past year, making it hard for a number of automakers to meet their respective production timelines. This has led to a delay in the supply of newly built vehicles in the United States, prompting the federal government to look into the problem.
United States President Joe Biden recently signed an executive order launching a 100-day review of the semiconductor supply chain in an effort to immediately address the shortage. According to reports, the goal is to ultimately increase the domestic supply of the product so manufacturers become less dependent on foreign suppliers.
Since the start of the year, a number of carmakers in the US have announced adjustments in their productions, particularly those with assembly plants in North America. Some of these companies include General Motors, Ford, Toyota, Volkswagen, Honda, Subaru, Nissan, and Stellantis.
In addition to the semiconductor supply chain, three other product supply chains are being looked into, such as pharmaceuticals, critical and strategic earth minerals, and large-capacity batteries used for electric vehicles.
The EO will also see some recommendations being made to strengthen the supply chain for all the products mentioned. With the objective of implementing these recommendations, the Biden administration is hopeful that America can start producing its semiconductors locally. At the moment, a majority of semiconductors being used in the US are made overseas.
“Diverse, resilient, and secure supply chains are going to help revitalize our domestic manufacturing capacity,” Biden said. “We all recognize that the particular problem won’t be solved immediately. In the meantime, we’re reaching out to our allies—semiconductor companies and others in the supply chain—to ramp up production to help us resolve the bottlenecks we face now.”
The wide-scale shortage of semiconductors has also begun affecting the electronics industry, with Apple and Sony facing supply issues as well.
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