Biden Administration calls chip shortage a 'national security issue'

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The Biden Administration views the current chip shortages plaguing the global economy as a "national security issue" ahead of a White House Summit focused on addressing the problem.

Credit: White House
Credit: White House


Back in February, President Joe Biden signed an executive order aimed at mitigating problems with the semiconductor supply chain. Part of the initiative to address the ongoing issues include a White House Summit on Monday.

When asked about whether the Biden Administration sees the chip shortage as a national security issue, White House Press Secretary Jan Psaki said "we certainly do."

As far as specific solutions to the chip issue, Psaki said the administration is looking at a "holistic, long-term, across-government approach." She also held off on announcing specific short-term solutions ahead of the summit Monday.

However, Psaki added that the White House is exploring options to ensure that similar chip shortages don't happen in the future. That could include allocating funds to boost U.S. chip production, among other potential solutions.

The virtual White House Summit on Monday will be attended by about 20 chief executives and other leaders in the tech, auto, and semiconductor industries, including the CEOs of General Motors, Ford, Intel, and Alphabet. Representatives of Apple supplier Taiwan Semiconductor Manufacturing Company are also expected to attend.

In opening remarks delivered at the summit, President Biden highlighted some of the significant investments that his White House is making in semiconductor and battery industries. Biden added that other countries, like China, are making similar investments, and the U.S. needs to make similar investments.

The president positioned the technology investments as part of a broader initiative to boost the U.S. economy and manufacturing ecosystem. That plan includes proposals like the American Jobs Plan, which focuses on rebuilding infrastructure and creating millions of jobs in the U.S.

"This is a moment for American strength and American unity. For government, industry, communities to work together to make sure we're ready to meet the global competition that lies ahead," Biden said.
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Comments

  • Reply 1 of 28
    lkrupplkrupp Posts: 9,110member
    White House Summit my ass. There’s nothing he can do about it. Follow the money. China has our gonads in their hands. They could shut down our entire military industrial operations if they wanted to... overnight. Where do we get the metals to build our aircraft, like chromium, titanium? Where do we get our rare earth metals for all the fancy technologies we have?  Environmentalists have seen to it that we no longer mine those minerals on our soil. And of course it’s cheaper anyway to buy them from China.
    edited April 12 calisurfboyzeus423watto_cobrahodar
  • Reply 2 of 28
    viclauyycviclauyyc Posts: 658member
    I read that it was Trump that ban companies to do business with Chinese chip makers. So these companies who mainly use lower end chip, eg power chip and control chip for car, all scrambled to the west to find new chip suppliers. That is what started the chip shortages. When you look back there were no plants shut down until recently.

    Not that I think US should ease the China ban.  

    By the way, I also read China is buying large amounts of used chip manufacturing machine, cause the new one is banned. So the price jumped a lot. US should also ban that too. 
    watto_cobraqwerty52
  • Reply 3 of 28
    jdgazjdgaz Posts: 380member
    Meanwhile, the White House will increase business taxes on these industries so they are no longer competitive with other non-US operations. Go figure. 
    zeus423watto_cobralkrupphodar
  • Reply 4 of 28
    jdgaz said:
    Meanwhile, the White House will increase business taxes on these industries so they are no longer competitive with other non-US operations. Go figure. 
    Gee, how did it work years back when business taxes were appreciably higher and all these companies did just fine?
    edited April 12 fastasleepjohnb0529watto_cobra
  • Reply 5 of 28
    sdw2001sdw2001 Posts: 17,535member
    jdgaz said:
    Meanwhile, the White House will increase business taxes on these industries so they are no longer competitive with other non-US operations. Go figure. 
    Gee, how did it work years back when business taxes were appreciably higher and all these companies did just fine?
    It’s not just about these companies. It’s about all companies. Hiring accelerated dramatically and family income went up by the most it has in decades.  
    watto_cobra
  • Reply 6 of 28
    mknelsonmknelson Posts: 736member
    jdgaz said:
    Meanwhile, the White House will increase business taxes on these industries so they are no longer competitive with other non-US operations. Go figure. 
    And that's why there are proposals to set a minimum rate around the world - kill the race to the bottom.

    sdw2001 said:
    It’s not just about these companies. It’s about all companies. Hiring accelerated dramatically and family income went up by the most it has in decades.  
    When did this happen? World War 2?
    fastasleepzeus423watto_cobraWgkrueger
  • Reply 7 of 28
    canukstormcanukstorm Posts: 2,479member
    lkrupp said:
    White House Summit my ass. There’s nothing he can do about it. Follow the money. China has our gonads in their hands. They could shut down our entire military industrial operations if they wanted to... overnight. Where do we get the metals to build our aircraft, like chromium, titanium? Where do we get our rare earth metals for all the fancy technologies we have?  Environmentalists have seen to it that we no longer mine those minerals on our soil. And of course it’s cheaper anyway to buy them from China.
    edited April 12
  • Reply 8 of 28
    I am pretty sure he thought they said Chocolate Chips.
    jeffzachariasBeatszeus423watto_cobra
  • Reply 9 of 28
    mac_dogmac_dog Posts: 886member
    jdgaz said:
    Meanwhile, the White House will increase business taxes on these industries so they are no longer competitive with other non-US operations. Go figure. 
    Can you provide a link (from a reliable source) that backs your claims?
    watto_cobrastevenoz
  • Reply 10 of 28
    mac_dogmac_dog Posts: 886member
    sdw2001 said:
    jdgaz said:
    Meanwhile, the White House will increase business taxes on these industries so they are no longer competitive with other non-US operations. Go figure. 
    Gee, how did it work years back when business taxes were appreciably higher and all these companies did just fine?
    It’s not just about these companies. It’s about all companies. Hiring accelerated dramatically and family income went up by the most it has in decades.  

    Hmmm...how much are families making (those that aren’t in the tech sector)? It’s why this country (the USA) needs a liveable wage. 
    watto_cobra
  • Reply 11 of 28
    mac_dog said:
    jdgaz said:
    Meanwhile, the White House will increase business taxes on these industries so they are no longer competitive with other non-US operations. Go figure. 
    Can you provide a link (from a reliable source) that backs your claims?
    Claims? Are you not watching Biden’s tax increase proposals to fund his infrastructures project???    
    zeus423
  • Reply 12 of 28
    larryjwlarryjw Posts: 777member
    jdgaz said:
    Meanwhile, the White House will increase business taxes on these industries so they are no longer competitive with other non-US operations. Go figure. 
    It doesn't matter what the tax rate on corporations is. The reason Amazon and others don't pay taxes is not the tax rate but the under the cover write-offs. 
    zeus423watto_cobra
  • Reply 13 of 28
    flydogflydog Posts: 945member
    viclauyyc said:
    I read that it was Trump that ban companies to do business with Chinese chip makers. So these companies who mainly use lower end chip, eg power chip and control chip for car, all scrambled to the west to find new chip suppliers. That is what started the chip shortages. When you look back there were no plants shut down until recently.

    Not that I think US should ease the China ban.  

    By the way, I also read China is buying large amounts of used chip manufacturing machine, cause the new one is banned. So the price jumped a lot. US should also ban that too. 
    There are no bans on "do[ing] business with Chinese chip makers."

    In case you haven't heard, there's this Covid-19 thing going around, which has resulted in a massive spike in demand of electronics (due to people working from home, among other reasons) coupled with a shortage of manufacturing (due to a reduction in capacity due to idled factories and labor shortages).



    pumpkin_kingwatto_cobrastevenoz
  • Reply 14 of 28
    flydogflydog Posts: 945member

    mac_dog said:
    jdgaz said:
    Meanwhile, the White House will increase business taxes on these industries so they are no longer competitive with other non-US operations. Go figure. 
    Can you provide a link (from a reliable source) that backs your claims?
    He can't because he literally made that up.  
    watto_cobraWgkrueger
  • Reply 15 of 28
    larryjwlarryjw Posts: 777member

    lkrupp said:
    White House Summit my ass. There’s nothing he can do about it. Follow the money. China has our gonads in their hands. They could shut down our entire military industrial operations if they wanted to... overnight. Where do we get the metals to build our aircraft, like chromium, titanium? Where do we get our rare earth metals for all the fancy technologies we have?  Environmentalists have seen to it that we no longer mine those minerals on our soil. And of course it’s cheaper anyway to buy them from China.
    The US companies went to China to avoid creating the infrastructure in the US to produce the chips, or giving a living wage to Americans. The US companies went to China to exploit the Chinese. The Chinese, unlike most other countries, wouldn't allow the US to exploit them. The Chinese drove the bargain: You want us to build your products, you'll have to help build our infrastructure to do it. 

    The Chinese aren't stupid. The US on the other hand....
    Japheywatto_cobra
  • Reply 16 of 28
    flydogflydog Posts: 945member

    lkrupp said:
    White House Summit my ass. There’s nothing he can do about it. Follow the money. China has our gonads in their hands. They could shut down our entire military industrial operations if they wanted to... overnight. Where do we get the metals to build our aircraft, like chromium, titanium? Where do we get our rare earth metals for all the fancy technologies we have?  Environmentalists have seen to it that we no longer mine those minerals on our soil. And of course it’s cheaper anyway to buy them from China.
    You'right. Meeting with CEOs of the largest tech companies in the world to discuss possible solutions that affects their industries is a stupid idea.  Better to just do nothing.

    Let us know when you have equally logical suggestions for curing cancer and slowing global warming. 
    johnb0529watto_cobraWgkruegerstevenoz
  • Reply 17 of 28
    crowleycrowley Posts: 7,808member
    lkrupp said:
    White House Summit my ass. There’s nothing he can do about it. Follow the money. China has our gonads in their hands. They could shut down our entire military industrial operations if they wanted to... overnight.
    Well that sure sounds like a situation that you might want to hold a summit about.
    johnb0529
  • Reply 18 of 28
    wizard69wizard69 Posts: 13,377member
    mac_dog said:
    sdw2001 said:
    jdgaz said:
    Meanwhile, the White House will increase business taxes on these industries so they are no longer competitive with other non-US operations. Go figure. 
    Gee, how did it work years back when business taxes were appreciably higher and all these companies did just fine?
    It’s not just about these companies. It’s about all companies. Hiring accelerated dramatically and family income went up by the most it has in decades.  

    Hmmm...how much are families making (those that aren’t in the tech sector)? It’s why this country (the USA) needs a liveable wage. 

    It depends upon what you mean by livable wage.   The fact is we can't compete with slave labor form China, India and some of the other countries that pay people $10 a month.   This is why Trumps increase on import duties made sense, at least a few sectors could stay in business.    The young people in these forums really don't understand how badly the working people in the USA got screwed over when trade was opened up with China.   By the way this is another case of where both the Democrats and the Republicans conspired in the decades since the opening of China, to destroy much of the manufacturing infrastructure in the USA.   Frankly greed at its worse.  

    In the end what is considered a livable wage is going to look more like poverty.   There just isn't the business climate to support high wage jobs in a way that would employ enough people.   lets face it Tesla can't employ everybody and they are the only company with a reasonable amount of employment growth in the USA.   Sadly Tesla has too much happening in China already, so is as much a part of the problem as any other major company in the USA.

    If you don't believe that we are getting screwed over manufacturing wise in the USA, consider our beloved Apple.   When they went to China for manufacturing there was zero impact on pricing to consumers here in the USA (common with many that went to China).   Apple went to China to increase profits at the expense of both the people here and in China.   So if you are so concerned about a livable wage you really need to consider other manufactures of consumer goods besides Apple.    It is obvious that Apple doesn't give a damn about wages paid here, in China and now in India.   It is pretty clear that they speak with forked tongue, paint a rosy picture of corporate policy on one hand and when out of sight getting the lowest wage possible to the point that it is slavery.


    hodar
  • Reply 19 of 28
    wizard69wizard69 Posts: 13,377member
    flydog said:

    lkrupp said:
    White House Summit my ass. There’s nothing he can do about it. Follow the money. China has our gonads in their hands. They could shut down our entire military industrial operations if they wanted to... overnight. Where do we get the metals to build our aircraft, like chromium, titanium? Where do we get our rare earth metals for all the fancy technologies we have?  Environmentalists have seen to it that we no longer mine those minerals on our soil. And of course it’s cheaper anyway to buy them from China.
    You'right. Meeting with CEOs of the largest tech companies in the world to discuss possible solutions that affects their industries is a stupid idea.  Better to just do nothing.

    Let us know when you have equally logical suggestions for curing cancer and slowing global warming. 

    There is nothing that Biden ( a complete idiot by the way) can do.   You can't create capacity at the snap of ones fingers.   More so you can't change managerial policy overnight.   Beyond that there are several plants that are being built and that construction started more than a year ago.   The fact is by the time government even gets started on the issue the congestion will have worked itself out.   The real risk here is Biden screwing things up.

    Your comment about cancer is complete stupidity.   If you have had or known anybody that has, suffered from one of the various forms of cancer you would know that Biden could do anything about that either.   As for Global warming I'd be happy if we had enough intelligence in the media to separate the baloney from the science and then look critically at the science.   In any event there is nothing Biden can do about global warming either.

  • Reply 20 of 28
    GeorgeBMacGeorgeBMac Posts: 9,409member
    The idea of the U.S. becoming self-sufficient in chip production is exposed as somewhere between unlikely and a pipe-dream in this article from Reuters.
    -----------------------------------------------------------------------------------------------------------

    Biden's chip dreams face reality check of supply chain complexity

    "consider a chip supplied by a U.S. firm for Hyundai Motor Co’s new electric vehicle, the IONIQ 5. ... production of the chip, a camera image sensor designed by On Semiconductor, begins at a factory in Italy, where raw silicon wafers are imprinted with complex circuitry.

    The wafers are then sent first to Taiwan for packaging and testing, then to Singapore for storage, then on to China for assembly into a camera unit, and finally to a Hyundai component supplier in Korea before reaching Hyundai’s auto factories.
    ...
    “Trying to reconstruct an entire supply chain from upstream to downstream in a single given location just isn’t a possibility,” David Somo, senior vice president at ON Semiconductor, told Reuters. “It would be prohibitively expensive.”
    ...
    Producing a single computer chip can involve more than 1,000 steps, 70 separate border crossings and a host of specialized companies, most of them in Asia and largely unknown to the public. ... The process starts with....."

    https://www.reuters.com/article/us-semiconductor-shortage-packaging-focu/bidens-chip-dreams-face-reality-check-of-supply-chain-complexity-idUSKBN2C01AL

    ---------------------------------------------------------------------------------------------------------------


    The idea of the U.S. becoming the world's factory is a fantasy. 
    Not only has the U.S. lost much of its competitive edge due to a number of factors, but the world (from Italy where the chip started to China where it ended) has gained a competitive edge.

    We need to drop this "Go it alone" fantasy and regain our competitive edge and rejoin the world as a global partner/competitor once again.  That means:
    --  Dropping our ideologically based hatred of government in favor of private industry.  They need to work together.
    --  Stop squandering our resources on such follies as the world's most inefficient health care system as well as the world's police force.


    Added:   But meanwhile Republican Josh Hawley wants to ban Big Tech from buying anything ever again while Democrat OAC wants to abandon competitiveness in favor of Green New Deals....   And both have very vocal minorities behind them who will focus attention on themselves with passionate, one-sided pleas and arguments devoid of logic and reason.





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