Posted on 04/07/2022 10:53:42 AM PDT by blam
The White House held a classified briefing on Wednesday with some U.S. lawmakers on the dire risks to the American economy from semiconductor supply chain issues as it pushes Congress for $52 billion in funding to subsidize production.
White House National Economic Council Director Brian Deese told reporters "the best estimates are the lack of available semiconductors probably took a full percentage point off of GDP in 2021."
The briefing included Commerce Secretary Gina Raimondo, Deputy Defense Secretary Kathleen Hicks, National Security Advisor Jake Sullivan to "discuss the urgent need to invest in made-in-America semiconductors as well as research and development that will protect our economic and national security," the White House said.
A persistent industry-wide shortage of chips has disrupted production in the automotive and electronics industries, forcing some firms to scale back production. There have been growing calls to decrease reliance on other countries for semiconductors.
"A significant interruption to our supply of semiconductors could cause historic damage to the U.S. economy – damage far greater than the impact of chips shortages on the American auto industry right now – and would undercut our technological competitiveness and military advantages over adversaries globally," the White House said.
The White House has been pushing Congress to approve U.S. subsidies for semiconductor chips manufacturing after months of discussions.
The Senate first passed $52 billion in chips funding in June that also authorized $190 billion to strengthen U.S. technology and research to compete with China, while the House of Representatives passed its version in early February. Deese said he hopes both the Senate and House will appoint negotiators this week to "quickly" begin a formal process to finalize a compromise bill.
"The risks are profound," Deese said of what would the U.S. economy face with a severe disruption.
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(Excerpt) Read more at newsmax.com ...
In the early days no-one knew what a semiconductor or a chip was.
So...I just told people I worked in electronics....then they'd ask me if I could work on their TV.
Those were the days.
Never waste a good crisis
SMH
why does the gov have to subsidize??? why do they have to fu ck with the marketplace?
Are they doing the same for the oil and gas industries to get them pumping?
It does not help that the primary suppliers of Industrial NEON gas (required for semiconductor production) are located in Ukraine (Mariupol & Odessa) and that the Russians/Chinese possibly could control most of the world’s Industrial Neon in a couple weeks.
> why do they have to fu ck with the marketplace?
The “marketplace” has spoken. It wants nothing to do with the United States except for consumption.
rhetorical question
The left’s solution to every problem is to throw government money at it. A better solution would be to place heavy tariffs on foreign competition. But nooooo....we can’t do that.
It was a shortage at first. Now, it’s China actively trying to destabilize the US
Blue State Semiconductor Mfg bailout (NY, CA, OR) - bump for later...
Ever read Ghost Fleet?
All this WEAK A$$ administration can do is IDENTIFY existing problems.
They have nary a clue in terms of SOLVING them.
Tell me what happened when President MAGA Trump was in office and we/US didn’t make enough ventilators?
Hey they provide the US citizenry with fentanyl so what’s the problemo?-)
China isn’t even close to being a leader in semiconductors. It is Japan and Taiwan for DRAM memory, Singapore for flash memory, and Taiwan for microprocessors... The problem is that the governments of those countries greased the skids to make those industries what they are today, while the USA took a more laissez-faire approach in the nineties and drove the industry away. It is true that there is higher value in design (Nvidia, Apple) than in the actual manufacturing of chips, but we are now exposed to the supply chain crisis. Trump was right to make our critical industries more protected domestically.
Vacuum tubes could be an option. Not a good option.
I remember going down to a local store with my Dad and testing the vacuum tubes from our malfunctioning tv set in a big testing console.
At 250 volts or so, they are mighty unfriendly devices inside the chassis.
Yep.
When the marketplace has been purposely garroted by foreign powers, then a free market isn’n happening.
TI sued Japanese manufacturers in the 1980's and won billions of dollars after it was issued.
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