What just happened? We already know that semiconductor shortages are having an affect on multiple industries, and the situation is expected to get worse. Information technology's become such an issue that the Biden administration is stepping in to try and address the problem.

White Firm printing secretarial assistant Jen Psaki said that the Biden squad is "currently identifying potential chokepoints in the supply chain and actively working alongside key stakeholders in industry and with our trading partners to do more now."

President Biden is expected to sign an executive order in the coming weeks directing a government-wide supply concatenation review for critical goods, including chips, writes Bloomberg. The 100-day review will be led past the National Economical Council and National Security Council. Its focus volition be on semiconductor manufacturing and avant-garde packaging, disquisitional minerals, medical supplies, and loftier-capacity batteries, such as those used by electric vehicles.

The government intervention has been prompted past the problems fleck shortages are causing in the automotive industry. Companies including Ford, GM, VW, and many more have all reduced or say they may reduce their output due to semiconductor supply bug. Full general Motors said it could wipe $2 billion from 2022 profit, while Ford has cut back manufacture of its popular F-150 pickup trucks at plants in Michigan and Missouri.

The White Firm declaration follows a January 19 letter of the alphabet sent to Biden adviser Brian Deese from the United Auto Workers matrimony that asked the administration to consider "urging major silicon wafer foundries to ramp upwards product of automotive form wafers."

On Thursday, CEOs of tech giants including Intel, AMD, and Qualcomm signed a letter of the alphabet urging Biden to increment support for domestic scrap production. Information technology notes that the United States' share of global bit manufacturing has dropped to 12 percent from 37 percent in 1990. The demands include "substantial funding for incentives for semiconductor manufacturing, in the form of grants and/or tax credits."

While the review is concentrating on easing problems in the automotive industry, information technology could ultimately aid address shortages elsewhere, including PC hardware and consoles.

Prototype credit: Macro photo