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The Biden administration will direct federal agencies to shore up the production and delivery of semiconductors, pharmaceuticals, advanced batteries and critical minerals after completing reviews of their supply chains.
In February, the White House ordered 100-day reviews of the four sectors’ sourcing networks. The studies sought to determine whether industries critical to U.S. national security are overly reliant on foreign suppliers, particularly in China, or affected by pandemic-related shortages.
Regarding the chip industry, the White House announced:
- Through strategic engagement with industry, the Department of Commerce (DOC) has supported nearly $75 billion in direct investments from the private sector in domestic semiconductor manufacturing and R&D. DOC will bolster its partnership with industry to facilitate information flow between semiconductor producers and suppliers and end-users. Leveraging the Department’s convening power, including through its advisory committees, DOC will bring stakeholders together to promote improved transparency and data sharing.
- Building on the success of recent engagements with Japan and the Republic of Korea, including the announcement of more than $17 billion in U.S. semiconductor investments by leading companies in ROK, the Administration will strengthen engagement with allies and partners to promote fair semiconductor chip allocations, increase production, and promote increased investment.
The White House’s supply chain fact sheet it also stated:
- The Administration’s Covid-19 Response Team has drastically expanded the manufacture of vaccines and other essential supplies, enabling more than 137 million Americans to get fully vaccinated.
- The administration has also worked with companies that manufacture and use semiconductor chips to identify improvements in supply chain management practices that can strengthen the semiconductor supply chain over time.
- The Department of Defense (DOD) has announced an investment in the expansion of the largest rare earth element mining and processing company outside of China to provide the raw materials necessary to help combat the climate crisis.
- And the Biden-Harris administration is working to address critical cyber vulnerabilities to U.S. supply chains and critical infrastructure, including issuing E.O. 14028 on “Improving the Nation’s Cyber Security” just last month.
The entire document is available here.
