Philadelphia, Pa
President Biden starts Asia trip with global issues and tech on agenda
The go to Friday is a nod to one in every of Biden’s key home priorities of accelerating the availability of laptop chips. A semiconductor scarcity final yr damage the provision of autos, kitchen home equipment and different items, inflicting larger inflation worldwide and crippling Biden’s public approval amongst U.S. voters.
Biden will grapple with a mess of overseas coverage points throughout a five-day go to to South Korea and Japan, however he additionally crafted an itinerary clearly meant to are likely to the considerations of his dwelling viewers as nicely.
Previewing the journey aboard Air Drive One, White Home nationwide safety adviser Jake Sullivan mentioned Samsung’s funding in Texas will imply “good-paying jobs for Individuals and, very importantly, it would imply extra provide chain resilience.”
Greeting Biden on the plant in South Korea would be the nation’s new president, Yoon Suk Yeol, and Samsung Electronics Vice Chairman Lee Jae-yong. Yoon is a political newcomer who grew to become president, his first elected workplace, barely greater than every week in the past. He campaigned on taking a harder stance towards North Korea and strengthening the 70-year alliance with the U.S.
The chip plant confirmed the distinctive nature of producing as guests had been required to don laboratory coats and blue booties to assist preserve the ability clear. Biden and Yoon, who didn’t put on protecting clothes, noticed an indication of the equipment, together with two items of American made gear for producing semiconductors.
A part of the pc chip scarcity is the results of sturdy demand as a lot of the world emerged from the coronavirus pandemic. However coronavirus outbreaks and different challenges additionally brought about the closure of semiconductor crops. U.S. authorities officers have estimated that chip manufacturing won’t be on the ranges they want till early 2023.
World laptop chip gross sales totaled $151.7 billion through the first three months of this yr, a 23% soar from the identical interval in 2021, in line with the Semiconductor Business Affiliation.
Greater than 75% of worldwide chip manufacturing comes from Asia. That is a potential vulnerability the U.S. hopes to guard towards by means of extra home manufacturing and $52 billion price of presidency funding within the sector by means of a invoice being negotiated in Congress.
The chance of Chinese language aggression towards Taiwan may probably lower off the stream of high-end laptop chips which might be wanted within the U.S. for army gear in addition to shopper items. Equally, the airtight North Korea has been test-firing ballistic missiles amid a coronavirus outbreak, a potential threat to South Korea’s manufacturing sector ought to the brinksmanship escalate.
By way of chip manufacturing, China leads the worldwide pack with a 24% share, adopted by Taiwan (21%), South Korea (19%) and Japan (13%). Solely 10% of chips are made within the U.S., in line with the Semiconductor Business Affiliation.
Samsung introduced the plant in Taylor, Texas in November 2021. It hopes to start operations within the second half of 2024. The South Korean electronics big selected the positioning primarily based on plenty of elements, together with authorities incentives and the “readiness and stability” of native infrastructure.
The White Home mentioned in a truth sheet issued Friday that semiconductor firms have introduced practically $80 billion in U.S. investments by means of 2025. That sum consists of $20 billion for Intel’s plant exterior Columbus, Ohio, as much as $30 billion by Texas Devices, a $1 trillion enlargement by Wolfspeed in North Carolina and investments by World Foundries and SK Group.
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