US govt works to establish and expand domestic production of semiconductors

The Biden Administration has announced having taken steps to establish and expand their domestic production of semiconductors, given that the US consumes more than 25 per cent of the world's leading-edge chips and produces zero of those chips which is considered as a national security risk.

US Commerce Secretary Gina Raimondo on Tuesday told reporters at the White House that the Department of Commerce plans to implement the USD 50 billion in CHIPS in this regard.

President Joe Biden last month signed a USD 280 billion bipartisan bill to boost domestic high-tech manufacturing, part of his administration's push to boost US competitiveness over China.

This past year, we saw the impact of the chip shortage on American families when car prices drove a third of inflation because of lack of chips, factory workers were furloughed, household appliances were often unavailable, all because of a lack of semiconductors, Raimondo said.

And as our economy and military become more reliant on ...