Chip shortage, this is how Biden will protect the US industry from China
Biden's plan with Intel and not just on anti-China chips. The article by Giuseppe Gagliano
Washington is preparing to help the US industry secure its supply chain for critical electronic components. A $ 50 billion plan is in the works.
To address the short-term shortage problem, Intel is negotiating with automakers to produce chips specifically tailored to its needs within 6-9 months.
However, the real motivation is to stand up to China. The White House is convinced – rightly – that Beijing is trying to exploit the dependence of Western industries on "made in China" electronic components to weaken the United States and its allies.
Joe Biden himself, from his office in the White House, during the virtual summit that brought together the leaders of the American semiconductor industry, read to the participants a letter signed by 23 senators and 42 representatives of both sides, in support of the plan. $ 50 billion. The letter points out that "the Chinese Communist Party is aggressively planning to reorient and dominate the semiconductor production line."
Several production lines of American automakers, such as General Motors and Ford, have already been shut down due to a lack of essential electronic chips for modern vehicles. This year alone 1.3 million cars and vans will not be able to leave the American factories, due to a lack of these components. The same problem affects producers in Europe.
The Detroit giants are demanding that a quarter of the $ 50 billion in credits in question be allocated to the production of these chips that are sorely lacking today. However, American industrial policy has always been careful not to favor specific companies, but rather a sector. The legislative means by which the aid will be granted have not been decided either. President Biden would like the credits incorporated into his massive plan to invest more than $ 2 trillion in public infrastructure.
The question of economic sovereignty is a fundamental aspect of national security. This explains why Joe Biden's National Security Advisor Jake Sullivan attended the summit alongside Brian Deese, director of the National Economic Council, but also explains the presence of executives from Intel, Micron Technology, Taiwan Semiconductor Manufacturing (TSMC) and Samsung.
Also, let's not forget that major American industries such as GM, Ford, Cummins in the automotive sector, Medtronic (medical devices), Northrop Grumman (air force) and Dell Technologies are dependent on semiconductors.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/carenza-chip-ecco-come-biden-tutelera-lindustria-usa-dalla-cina/ on Fri, 16 Apr 2021 07:48:43 +0000.