Biden to sign executive order to address semiconductor chip shortages
President Biden is expected to sign an executive order on Wednesday to review the supply chains for a slew of American goods, including semiconductor chips and large-capacity batteries in the auto-making industry, AP reports.
Why it matters: Automakers across the country have been facing a semiconductor chip shortage that has led them to halt some car production and furlough workers.
- While administration officials have met with automakers and are talking with foreign allies to boost supplies, there does not appear to be an immediate solution for the chip shortage.
- "The supply disruptions threaten to harm U.S. economic growth and could lead to layoffs, prompting concern from the White House as Biden seeks to rebuild an economy battered by the coronavirus," Bloomberg writes.
- Context: Demand for chips increased faster than expected amid the pandemic, which led to the shortage.
Details: The order will include 100-day reviews of supply chains for semiconductor chips, large-capacity batteries, rare minerals and pharmaceuticals, per Reuters.
- It will also have "sectoral reviews to be completed within one year for defense, public health and biological preparedness, information communications technology, energy, transportation and food production," AP writes.