Biden Signs Executive Order Focused on Semiconductor Shortfall

“They don’t know how the sausage gets made at the bottom.” That’s Mike Hogan, an SVP at contract chip maker Globalfoundries, telling the WSJ about automakers’ attitudes toward semiconductors.

Well, they’re learning now. We first touched on the great semi shortage a few weeks ago, but let’s get up to speed:

• President Biden issued an executive order Tuesday calling for a review of the US’s most strained and critical supply chains, and he met with congressional reps Wednesday to discuss chip production.
• Automakers are still idling production at various plants around the world.
• PlayStation’s CEO recently told WaPo the shortage has most definitely affected Sony. It’s competing with automakers and smartphone vendors for more chips.

Strange times: From GameStop to semi shortages, unusual stories are landing on the president’s desk. Semiconductors aren’t as buzzy as meme stonks, but they’re a key geopolitical, consumer, and tech problem wrapped together in one story.

Endgame: The White House is seeking $37 billion to alleviate the semi shortfall. Building cutting-edge chip fabs in the US now seems like a foregone conclusion. Those plants are currently concentrated in Asia and operated by contract chipmakers.