February 15, 2023

State of the Union Addresses Supply Chain

“Folks, I know I’ve been criticized for saying this, but I’m not changing my view. We’re going to make sure the supply chain for America begins in America — the supply chain begins in America.” – United States President Joe Biden.

U.S. President Biden’s State of the Union address took place this past week on Tuesday, February 7, and the supply chain was at the heart of the speech. Early on in the address, President Biden discussed the need for increased semiconductor manufacturing in the United States, sharing that the country invented semiconductors but now only produces around 10% of these all-important chips. He went on to discuss the importance of these chips, sharing that each automobile produced today requires around 3,000 semiconductors; however, they are now in shortage, delaying car production across the nation and eliminating jobs in the industry.

How the Government is Addressing It

The President went on to share that this is why the U.S. government implemented the CHIPS and Science Act. The legislation is already seeing numerous manufacturers scrambling to build new plants across the country. In addition, the group passed a Bipartisan Infrastructure Deal to implement numerous infrastructure and environmental issues including:

Improved transportation options to make public transportation more easily accessible.
Updated airports and seaports to strengthen supply chain and prevent disruptions.
A national network of EV chargers with a minimum of 500,000 charters by 2030.

While the act has many more items that are vital to the state of the nation, these three items alone have significant impacts to the global electronics supply chain.

As the U.S. government continues working towards increased chip manufacturing capabilities and updated infrastructure across the nation, we look forward to seeing the effects on the global supply chain.

To learn how your company could be impacted by these implementations, contact your Converge representative today.