Biden calls for new funding to fight semiconductor shortage in budget request

In its first budget proposal to Congress on Friday, the White House called for new funding to fight the ongoing semiconductor shortage.

Among other measures, the White House’s budget request includes $150 million to fund two new manufacturing programs, including one targeting domestic semiconductor manufacturing. It’s the latest effort from the White House to address the ongoing semiconductor shortage, which has stalled supply for consumer items like the PlayStation 5 and halted production at Ford assembly lines.

The “American Jobs Plan,” the sweeping $2 trillion infrastructure package unveiled in March, also included new funding to build domestic chip manufacturing capacity, allocating over $50 billion for investment in the sector. In February, President Biden signed an executive order calling for government reviews into the semiconductor supply chain. These reviews were set to end in June.

Advertisement

The global semiconductor shortage is the result of a number of factors spurred on by the coronavirus pandemic. As more Americans began to work and learn online, the demand for products like laptops and other consumer electronics rose dramatically. The production of chips also slowed down largely due to former President Trump’s trade war with China.

Advertisement

On Monday, White House and cabinet officials are set to host a virtual CEO summit on semiconductor supply chain resilience. The conversation will focus on Biden’s jobs plan and ways to strengthen the semiconductor supply chain. Companies like Alphabet, AT&T, Ford, General Motors, Intel, and Samsung are expected to be in attendance.

Advertisement