Biden meets CEOs to address chip shortage, says US will lead again

한겨레 입력 2021. 4. 14. 15:36
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The Virtual CEO Summit on Semiconductor and Supply Chain Resilience was held at the White House on Monday. During the summit, Biden told the CEOs in attendance that "they know better than anyone that our competitiveness depends on where you invest and how you invest."

Biden said during the summit that he's "building out America's supply chain so we never again are at the mercy of another country or any other nation for the critical needs."

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The summit was designed to repair the damage that the global chip shortage is inflicting on American industries and jobs
US President Joe Biden holds up a silicon wafer, as he participates virtually Monday in the CEO Summit on Semiconductor and Supply Chain Resilience in the White House. (AP/Yonhap News)

US President Joe Biden held a meeting at the White House on Monday about the chip shortage and called on corporations to invest aggressively. Biden’s goal is to reduce damage to American companies and consumers and create more US jobs by expanding the semiconductor supply chain.

Biden’s comments are undergirded by a national security initiative to push aside China in their rivalry over semiconductors and become the global leader of an industry that will define the future.

The Virtual CEO Summit on Semiconductor and Supply Chain Resilience was held at the White House on Monday. During the summit, Biden told the CEOs in attendance that “they know better than anyone that our competitiveness depends on where you invest and how you invest.”

“We need you, in turn, to support the American workers and American communities in every part of the country,” Biden said.

The summit was chaired by White House National Security Advisor Jake Sullivan and National Economic Council Director Brian Deese, with Commerce Secretary Gina Raimondo in attendance.

A total of 19 companies were at the summit, including global chipmakers such as Samsung Electronics, the Taiwan Semiconductor Manufacturing Company, Microsoft, and GlobalFoundries and American semiconductor, telecommunications, and automotive firms such as Alphabet (parent company of Google), AT&T, Dell, General Motors and Hewlett-Packard. Samsung Electronics was represented by President Choi Si-young.

“Chips, like the one I have here,” said Biden, holding up one of the thin silicon wafers that hold integrated circuits, “these chips, these wafers, are batteries, broadband; it’s all infrastructure. […] We need to build the infrastructure of today, not repair the one of yesterday.”

Biden also mentioned the American Jobs Plan, the plan for investing US$2.25 trillion in infrastructure that he unveiled last month. “The plan I propose is going to create millions of jobs, rebuild America, protect our supply chains, and revitalize American manufacturing. And it’s going to make America research and development a great engine again,” he said.

In the short term, the summit on Monday was designed to repair the damage that the global chip shortage is inflicting on American industries and jobs. That damage has been particularly severe in the automotive industry, which cut its chip orders last year on the expectation that demand for cars would decrease after the outbreak of COVID-19. Now, the industry can’t handle a surprising surge in demand.

Resuming production at idling automobile plants and adding more chip assembly lines could also help create jobs inside the US.

Biden’s front-and-center approach to expanding the semiconductor supply chain illustrates the US’s long-term strategy, in which semiconductors are regarded as central to the country’s competitiveness in the future.

During the summit, Biden stressed the need to beat China in this competition. “The Chinese Communist Party […] ‘aggressively plans to reorient and dominate the semiconductor supply chain,’” Biden said, quoting from a letter sent by a bipartisan group of American lawmakers.

On Feb. 24, Biden signed an executive order for a 100-day assessment of the supply chains of four key industries: semiconductors, batteries, rare earths, and pharmaceuticals. Most of those industries are highly dependent on China.

Biden said during the summit that he’s “building out America’s supply chain so we never again are at the mercy of another country or any other nation for the critical needs.”

The very fact that the meeting was chaired by the White House National Security Advisor — even though semiconductors are under the purview of the Commerce Department — symbolizes that the Biden administration is approaching semiconductors as a national security issue.

Biden made no effort to hide his intention to restore American leadership through control of key sectors, such as semiconductors.

“We led the world in the middle of the 20th century. We led the world toward the end of the century. We’re going to lead the world again. We’re going to lead it again in the 21st century,” he said.

It’s also apparent that Biden hopes to use semiconductors to strengthen a coalition of allies and friendly states that can contain China.

By Hwang Joon-bum, Washington correspondent

Please direct comments or questions to [english@hani.co.kr]

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