Biden is demanding a $ 50 billion investment in semiconductors …

Biden is demanding a $ 50 billion investment in semiconductors …

US President Joe Biden vowed to strengthen the resilience of the US supply chain to semiconductors in the face of global supply shortages and proposed a $ 50 billion investment plan to the industry.

“China and other countries aren’t waiting. There’s no reason Americans should wait,” Biden told a virtual CEO summit involving the technology, chip and automotive industries. “We are actively investing in areas such as semiconductors and batteries. That’s what they do. So we have to do that too.”

According to the Washington-based Semiconductor Industry Association (SIA), participants include Samsung Electronics Co. of South Korea as well as US companies. And Taiwan Semiconductor Manufacturing Co. Executives were also included.

The Biden administration is stepping up its call to build a safe supply chain for important minerals such as semiconductors and rare earths amid concerns that the United States is dependent on China.

The recent global chip shortage has forced US car manufacturing plants to slow down.

Efforts to strengthen the supply chain are also expected to be on the agenda when Biden meets with Prime Minister Yoshihide Suga at the White House on Friday.

According to SIA, the share of global chip manufacturing capacity based in the United States decreased from 37% in 1990 to 12%.

“This decline is primarily due to large subsidies from the governments of global competitors, and the United States is competitive in attracting new semiconductor manufacturing facilities,” the association said in a statement released on the same day. I’m at a disadvantage. “

Noting that federal investment in semiconductor research remained flat as a share of GDP, Biden also welcomed the call to Congress to invest $ 50 billion in manufacturing and research in the region.

The proposal is included in a $ 2 trillion investment plan announced by Biden in late March to create millions of jobs and rebuild infrastructure.

Approximately 75% of the world’s semiconductor manufacturing capacity is concentrated in mainland China and other parts of East Asia, which are heavily exposed to high seismic activity and geopolitical tensions, according to a report released by the SIA in collaboration with the Boston Consulting Group. doing.

In addition, it said that Taiwan currently has more than 90% of the world’s most advanced semiconductor manufacturing capacity.

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