The Biden Administration is researching ways to address the lack of semiconductors, a crucial element in the manufacturing of mobile phones and medical devices.
It was difficult to obtain inputs for production even before 2020 and the pandemic, including semiconductor manufacturing equipment used to make older varieties of chips and chip components. The difficulty existed at the same time as growth in demand for chips as industries shifted to more semiconductor-intensive products like 5G phones.
“The semiconductor shortage has been described as due to a ‘perfect storm’ of factors,” the U.S. Department of Commerce (DOC) wrote in a Jan. 25 blog post.
The Biden Administration is looking to make partnerships with manufacturers.
“We’re going to capitalize on this new information to engage industry on node-specific problem-solving in the coming weeks,” the DOC article said. “We will also look into claims about unusually high prices in these nodes.”
The pandemic exacerbated these trends by dramatically increasing demand for products that require semiconductors of all types.
Simultaneously, supply was disrupted by a series of black swan events such as factory fires, winter storms, energy shortages, and COVID-19-related shutdowns.
“We will continue to advocate for the President’s proposed $52 billion to enhance domestic semiconductor production included in the U.S. Innovation and Competition Act,” the blog said. “This semiconductor shortage is the result of a significant mismatch in supply and demand, further exacerbated by the pandemic.”
