Chips are now indispensable for smartphones, computers, automobiles and various home appliances. Chips used in many areas from chipsets to the game industry are no longer inadequate. The USA does not want to be dependent on China by producing more chips. Therefore, US President Joe Biden will present a management program to companies regarding the chip crisis.



One of the important reasons for the USA to increase its chip production was the following: Due to the sanctions imposed on China during the Donald Trump era, sufficient number of chips could not be obtained for a long time. Joe Biden will also make an administrative decision for the supply chain review, according to the report published in Bloomberg. It is said that the new administration gives priority to “identifying bottlenecks in supply chains” to alleviate existing shortages.

The auto industry has been the worst hit by the global chip shortage, and some companies have had to shut down assembly lines. Besides the automobile industry, the gaming industry is also affected as there is currently a shortage of game consoles such as the Sony PlayStation 5. If this shortage cannot be dealt with in the long term, serious problems may occur in product supply.

Another step to be taken by the US administration and Joe Biden will be based on attracting chip manufacturers to the USA. New incentives will be given for manufacturing companies such as Intel and Qualcomm to set up their foundries in the USA.


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