Failure to meet global chip production demands brought about a new crisis. The government of Biden seeks to spot bottlenecks by scrutinizing supply chains.

The global chip production shortage has a negative impact on many industries, especially the automotive industry. The Biden government is preparing to make an aggressive move to address the chip shortage.

Biden move
As it is known, with the effect of the pandemic last year, there has been an interest in many products such as laptops, tablets, consoles and wireless headphones above expectations. While some sectors closed the year 2019 with a decline, this interest almost exploded thanks to this interest. However, the high demand eventually reflected negatively on chip production.

There are many designers in the chip industry, including giants such as Apple and Qualcomm, but TSMC is the leader when it comes to production. Even Intel had to shift some of its processors to TSMC due to their inefficiency in production.

TSMC also started to fall short due to the high demand. When special reasons such as Apple separating more than half of the 5nm bands for itself, there is a globally noticeable chip shortage.

The chip shortage affects the automotive industry the most. It is predicted that there will be a loss of approximately 1 million vehicles in 2021 and the financial loss will reach 60 billion dollars. Huge plants such as Mazda, Ford, Honda have closed or slowed production.

Last week, the government of Biden and the Taiwan economy minister discussed the issue over the teleconference. This week, it was announced that an aggressive struggle plan would be created. The aim of the plan is to monitor the supply chain for critical products in the first place and identify bottlenecks.

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In the long run, plans are made to shift chip production within the borders of the country. Giants like Intel and Qualcomm urgently expect incentives such as tax exemptions or grants from the government. Because as the decision is delayed, commissioning of such investments is delayed.


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