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Semiconductor Shortage To Be Solved With Executive Order

Joe Biden
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President Joe Biden has been busy since he first took office last month. Now, the President is looking to alleviate the global semiconductor shortage according to Engadget (via Bloomberg). Through “aggressive steps” the Biden administration is looking to fix this problem.

The chip shortage is affecting many industries. The chip shortage is affecting the auto industry, the smartphone industry, and even the gaming industry. As a result, many technology products that were anticipated couldn’t keep up with demand.

President Biden “is expected to sign an executive order directing a government-wide supply chain review for critical goods.” Hopefully, this review will be able to solve a lot of the constraints on the production of technology.

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Since the pandemic started more and more people around the world have needed to work and learn from home. As a result, tablets, laptops, and gaming demand has skyrocketed. Also, smartphone demand has been affected as well.

Many manufacturers of technology have not been able to supply the market with their upcoming products. For example, the PlayStation 5 from Sony has been in high demand since. But thanks to the chip shortage Sony has not been able to keep up with the demand for the new console.

Semiconductor companies like Qualcomm have warned that it is struggling to meet the demand for smartphones. At the beginning of the pandemic, chip orders collapsed. But, as it went on and more people began working and studying from home the demand for new technology increased.

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The semiconductor shortage is being tackled by the Biden Administration

President Joe Biden’s administration is looking to identify choke points in supply chains. By identifying choke points the administration can ease the current shortages. The Administration will also consider creating new incentives to help.

These incentives will aim to bring chip manufacturing to the United States. Top executives from chip makers like Intel and Qualcomm are urging the Administration to fund these initiatives. As of now, it is not clear what these incentives will include.

The plan to tackle this chip shortage is a welcome plan. The longer this pandemic goes on the higher the demand for technology will be. Gamers will be happy when the shortage is over. When it is they will have an easier time getting their new favorite console.

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Gaming has had a major boom since the pandemic. Both Microsoft and Sony have struggled to provide their new gaming hardware. Thanks to updates and alerts of restocks lucky customers have been able to get their hands on the consoles. Hopefully, console scalping will end as well when the shortage is over.