Wednesday, November 30, 2022
News POTUS Seeking $37 Billion To Increase Microchip Manufacturing In The US

POTUS Seeking $37 Billion To Increase Microchip Manufacturing In The US

The intention behind the bill is to solidify the country’s supply chain and this will help automakers


  • Global chip shortage has forced a number of assembly plants to idle production.

  • US firms account for 47% of global chip sales but the US produces only 12% of them.


The global microchip shortage has been a massive thorn in automakers’ sides. The lack of components has forced many car companies to slow or worse, idle assembly lines while they wait for supplies to arrive. President Biden is seeking $37 billion to help increase microchip production, but not only for automakers.

The order will focus on areas of defense, public health, communications technology, transportation, energy, and food production. As far as car companies are concerned, they applaud Biden’s decision to do more to protect American supply chains.

Microchip Shortage Is Not Done Affecting The Auto Industry

Automotive News (subscription required) reports that Ford said in a statement that it was “incredibly important for our labor force, our customers and our business that we have a commitment to end this shortage as soon as possible.”

Biden’s order will look into ways to differentiate the country’s supply chain dependence for certain products. The idea will be to develop and invest in domestic production and partnering with other countries in Asia and Latin America in the event that the US cannot produce their own products.

Trending Now

Toyota bZ4X: Cold Weather Tests Show a Much Shorter Range than Advertised

The electric SUV only managed to drive 47% of its WLTP range in Danish tests conducted at 4˚C (39˚F). Even when compared with...

Top 20 Vehicles with the Longest Potential Lifespan

New vehicle prices continue to climb out of many consumers' reach. Used vehicle pricing remains high however shopping for something older remains an...

Chevrolet Unveils the FNR-XE Concept, an Electric Four-Door Coupe for China

This concept will most likely lead to a production model, which could be offered in North America. Like other upcoming GM EVs, this...

Hankook Launches iON Winter Tires for EVs

Hankook’s iON tire line is specifically designed for EVs. The iON winter tires arrive next spring. Electric vehicles are posing serious headaches for both...

Hyundai Brings in Designer Giugiaro to Recreate 1974 Pony Concept

Pony Concept was intended to make production Giugiaro helped launch the Hyundai brand Hyundai is partnering with Giorgetto Giugiaro to recreate the car that...
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.