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To address chip shortages, President Biden is not depending entirely on an executive order. According to The Verge, the Biden White House has released its first budget outline, which will invest $150 million to create two Manufacturing Innovation Institute projects, one of which will focus on domestic chip development. According to the proposed budget, the related institute will assist the United States in reclaiming its role as a “global leader” in semiconductor manufacturing.
The plan would not specify how the institute will achieve its objectives or which businesses will be supported. Intel and Samsung are two of the most well-known companies with US-based chip plants, and TSMC will begin construction on an Arizona plant this year.
The funds will be a small part of a broader $1.5 trillion plan that will also finance renewable energy programmes, increase rural broadband coverage, and encourage government acceptance of electric cars.
There is no guarantee that the production drive will be successful. The institute is not a direct venture, and its effectiveness can be determined by its precise strategy. It does, however, represent growing fears that a lack of domestic output is harming the region. Ford, General Motors, Apple, and other brands are reported or alleged to be dealing with production problems related to chip shortages. If the budget is passed, it will help to alleviate the pressure and minimise the likelihood of a potential crisis.