US President Joe Biden signed a decree with which he hopes to save the country from a shortage of semiconductors, which some experts call one of the foundations of the national economy, writes CNBC.
The decree does not imply any specific actions and is aimed at enhanced monitoring of the state of affairs in the production and supply of semiconductors. At first, it will be carried out over the next 100 days, then it can be extended for several more months, and also expanded to other sectors of the economy.
Semiconductors, also often referred to as chips, are used in the manufacture of electronics, batteries for electric vehicles, medical devices, and many other products. In early 2021, the global market was in short supply due to supply chain disruptions amid the coronavirus pandemic and the trade war between the United States and China, where the main production facilities are located.
The situation has negatively affected many American companies from various sectors of the economy. So, Ford announced an expected decline in production by 20 percent in the first quarter due to a lack of raw materials. Another carmaker, General Motors, also warned of stopping production at several factories.
Several industry associations have sent letters to Biden asking him to stimulate the creation of new semiconductor manufacturing facilities in the country, since the US currently only accounts for 12.5 percent of the global market.