US to Prioritize Establishing Resilient & Independent Supply Chains
President Biden is set to pursue a national supply chain strategy that will make US manufacturers less reliant on China. The effort comes after several US companies, including General Motors, were forced to cut production after a shortage of chips.
According to Engineering & Technology, “There are a limited number of companies designing and manufacturing semiconductors, and many US companies are reliant on a single company: the world’s largest chip foundry, Taiwan based TSMC.” Surprisingly, 47% of global chip sales are based in the US, however, only 12% of chip manufacturing is carried out in the US.
Biden reported that he is “directing senior officials in my administration to work with industrial leaders to identify solutions to the semiconductor shortfall. Congress has authorized a bill but they need $37 billion to make sure that we have this capacity. I’ll push for that.”
Nikkei Asia reports that the US imports 80% of its rare earths from China and up to 90% of some medical products from other countries. Biden’s efforts will prioritize a restructuring of supply chains to establish resilient and independent supply chains within the US.
You can learn more about all the latest efforts within the supply chain and logistics industry at the Retail Supply Chain & Logistics Expo at the Las Vegas Convention Center on September 1st & 2nd, 2022. Get your free tickets today!