With computer chips scarce, Biden orders supply chain review

[Yo_Mama_Been_Loggin]

President Biden announced Wednesday that his administration would review supply chains for key components in computers, electric cars, pharmaceuticals and military hardware, pledging to address a concerning dependence on unreliable foreign sources that was exposed when the pandemic upended the global economy.

Biden didn't mention China by name, but his initiative could increase tensions between Washington and Beijing as they compete for international influence, should the United States take steps to be more economically independent and encourage allies to do so as well.

"We shouldn't have to rely on a foreign country, especially one that doesn't share our interests or our values, in order to protect and provide for our people during a national emergency," Biden said as he signed an executive order launching the review.

Although supply chains have long been a topic of concern within businesses and think tanks, the issue exploded into public view last year when medical workers struggled to obtain enough masks and other protective gear to treat coronavirus patients. More recently, automakers including General Motors and Ford have slowed production because they can't obtain enough computer chips for new vehicles, which need them to power everything from engines to entertainment systems.

https://www.msn.com/en-us/news/politics/with-computer-chips-scarce-biden-orders-supply-chain-review/ar-BB1dYeGh?ocid=DELLDHP&li=BBnb7Kz

That's because Bill Gates has been busy mixing them into COVID vaccine so they can be injected into people.

[crickets]

1. It's about time. Good for Biden for stepping up to address the issue.

We may not be able to reach manufacturing independence and we may not want to try, but we certainly should have the capacity to provide for enough of our manufacturing needs that we aren't caught completely flatfooted again. Outsourcing has its limits.

Lobbyists for major industries, including healthcare, automotive, information technology and more, sent a letter to Biden this month calling for more federal funding and tax cuts as incentives to increase semiconductor manufacturing in the U.S.

Not so fast. There's a thing called supply and demand. The demand is definitely there. Cough up the supply or get out of the way for those who can. There's no need for federal funding or a tax cut to do normal business. Greedy jerks.

[Sgent]

4. If Tiawan and S Korea

can make them cheaper, then the won't make them in the US. Same with processing rare earth metals. You have to subsidize the operation in some manner.

Even Intel makes wafers in the US and then sends them to China to be packaged (which often requires rare earth metals) and delivered worldwide.

[crickets]

5. I know. It's true that it's hard to compete with a cheaper product,

but cheaper is not always better. Quality matters. What's the quality of an overseas product compared to a domestic one? Just throwing out a question because I wonder. I remember when "Made in the USA" was a good thing. I inherited a decades-old, completely unrusted slotted kitchen spoon from my mother that proves it. If you don't cook, you may have no idea what a big deal that is, but whatever. Transfer the question of that quality to military materiel and I think we have an issue that may resonate a little more with those who don't care about spoons.

Some of the reasons overseas manufacture is cheaper comes down to safety regulations and wages. Safety regulations are life saving and therefore I have no truck with companies who complain about the expense. Moving on, manufacturing businesses want federal funding and tax cuts to be able to "afford" to pay their domestic work force. Oh, how inconvenient it is that workers in the US want a decent wage. (sorry, none of this snark is aimed at you)

Part of my frustration is that Congress can't seem to pass a bill to help people feed their kids and hold on to their homes - people unable to work through no fault of their own - but here come the corporations holding out their fat sweaty hands, and their bill will likely sail through with very little of the aggro faced by the average citizen. So, the only way manufacturing corporations will be able to afford to pay a decent wage is with federal funding and tax cuts. Who pays the lion's share for the federal funding and tax cuts? The very same people trying to get a decent wage.



It's frustrating.

[SharonAnn]

2. D'uh. About time! I predicted this problem more than 20 years ago.

[Initech]

3. The supply chain for PCs right now is really fucked up.

And it's a combination of COVID, Dogecoin, and Trump's tariffs. But the really crucial parts of a new PC - mainly processors and graphics cards are flying off the shelves faster than the retailers get them in stock. There's some serious correction that is going to be needed here.