U.S. President Joe Biden on Friday joined Intel's announcement of a massive 20 billion investment in U.S. chip production at a time when shortages are fueling inflation.
Biden on Friday praised the Intel project as a" truly historic investment for the United States and American workers, " saying it was a way to ensure future economic independence for the United States.
The US President reiterates that the country's rising inflation is directly linked to the problems of global supply chains and urges industrialists to return production centers, especially the semiconductor industry, to the United States.
Electronic chips are essential in a wide range of industries and products ranging from cars to smartphones to medical equipment to household electrical appliances.
Intel said Friday it will start building two semiconductor plants near Columbus, Ohio, by the end of the year, with the goal of starting chip production from 2025.
Intel Group president Pat Gelsinger of the White House, along with Biden, said the investment was "preliminary," speaking of a hundred billion dollars in investments over the next decade to meet the needs of companies in the semiconductor industry.
Biden stressed the huge economic potential of the project, citing cars, of which semiconductors currently make up 4 percent of their components, and that proportion should rise to 20 percent by 2030.
"My administration will continue to use all the tools at its disposal to secure supply chains, strengthen our economic resilience, and do more in America, because ultimately what is at stake is our national security and our economic security," he said.
He saw the two new Intel plants in Ohio as "a symbol of what America is," people from all walks of life working together to create the "most advanced industry" in the world.
Intel plans to hire three thousand new employees at these sites, which will require seven thousand construction workers.
With the covid-19 pandemic highlighting Asia's industrial dependency, governments, particularly in the United States and Europe, are keen to secure their semiconductor supplies after years of shifting production centers to lower-cost Asian countries.
The bet is also diplomatic, with the bulk of the chips produced in Taiwan, which Beijing claims as an integral part of its territory.
"The United States once led the world in global semiconductor production. But over the past decades, the United States has lost its primacy, with our share of global semiconductor production falling from 37 percent to just 12 percent over the last thirty years,"he said.
Biden made the remarks with the slogan "A Future made in America"behind him.
The president's Economic Advisers point out that one-third of the annual price increase last year was "only from high car prices," the sector hardest hit by the chip crisis.
Biden on Friday urged Congress to pass a law aimed at boosting research, development and manufacturing of essential materials in the United States.
No near-term effect
The Intel chief also called on lawmakers to move forward, saying "We are doing our own thing, but we cannot do everything alone," stressing the major economic consequences.
The Senate in June passed a law on innovation and competition, and the White House said the administration was "working with the house and Senate to pass this legislation once and for all".
The White House said the text includes 52 billion in "chips for America" Funding to "attract more investment from the private sector and maintain American technological leadership".
Since the beginning of 2021, the semiconductor industry has announced new investments of nearly 8 80 billion in the United States until 2025, according to data from the industry association cited by the White House.
Commerce Secretary Gina Raimondo said:"American consumers can expect lower prices as we bring back the semiconductor production that is the engine of our economy.
However, this is not expected to depress inflation in the near term as production will only start after a while.
Comments
Post a Comment