Biden’s first budget proposal would fight chip shortages with US factories

President Biden does not rely solely on an executive order to dealing with flea shortages. The edge reports that the White House Biden has Posted its first budget proposal, and the plan would spend $ 150 million to establish two Manufacturing Innovation Institute programs, including one for domestic chip production. The relevant institute would help the United States regain its title of “world leader” in semiconductor manufacturing, according to the provisional budget.

The proposal does not simply describe how the institute would achieve its goals, or which companies could benefit from support. Intel and Samsung are two of the best-known companies with US-based chip factories, while TSMC to start build a factory in Arizona this year.

The funds would be only a small part of a larger $ 1.5 trillion package that would also support clean energy projects, expand rural broadband access, and boost the adoption of electric vehicles. to the government.

There is no certainty that the manufacturing push will work. The institute is not a direct investment and its success will depend on its exact approach. However, this reflects growing concerns that the lack of US production is hurting the country. Ford, GM, Apple and other brands are known or believed to be struggling with manufacturing issues related to chip shortages. If the budget moves forward, it could help ease that tension and help the United States reduce the chances of a future crisis.

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