As we witnessed in 2020, the availability of high-performance CPUs in the market was not enough to meet the buyers’ demands. We have already seen how the CEOs of companies like Intel and AMD have to written to the new U.S president, Joe Biden, to give additional fundings to the production of semiconductors so that the companies can meet the growing demands of the companies.
In recent updates, President Joe Biden’s top economic adviser, Brian Deese, has sought the Taiwanese government’s help to resolve the growing global semiconductor shortage.
The letter indicates that the White House is finally getting serious regarding the global issues which the former president believed didn’t even exist. Deese, the director of the National Economic Council, and National Security Adviser Jake Sullivan are both personally engaged in the effort to address the issue.
The shortage of semiconductors has majorly impacted the U.S auto-manufacturing industry; however, not only the U.S but also every major manufacturing industry in other countries is affected by the shortage of semiconductors. However, all the countries that are addressing the issue agree upon that the shortage is not a short-term crisis.
The country has the world’s largest semiconductor manufacturing industry and also relies on U.S. weapons to defend against China, which views the island as part of its territory and has threatened to use force if Taipei moves toward formal independence. That’s china for you.
The auto industry is depending on the White House to convince the governments of other countries to allocate supplies to the U.S.
“We think those are reasonable things for the government to ask. This is going to be a problem for the first half of the year.”
Why the Auto industry is in Crisis?
The auto industry was first hit in December due to chip shortage, coinciding with a tumultuous transition of power, an impeachment trial, the ongoing pandemic, and the urgent push for an economic stimulus. The company didn’t have time to recover because the government was busy protecting its seat. And as soon as Biden was sworn in as the president the industry only managed to receive preliminary support to fix the problem.
The auto industry suffered shortfalls in chips used for everything from parking sensors to reducing emissions. With carmakers including Germany’s Volkswagen AG, Ford, and Japan’s Toyota Motor Corp. forced to halt production and idle plants, the global Auto market suffered heavy losses and still has a long recovery road.