President Biden Signs Executive Order Directing Review of U.S. Supply Chains

On Wednesday, President Biden signed an executive order directing both an immediate and year-long review of U.S. supply chains for critical products, including semiconductors.

 “We need to stop playing catch up after the supply chain crisis hits,” President Biden said. “We need to prevent the supply chain crisis from hitting in the first place.”

The executive order – which requires a 100-day review of semiconductors, pharmaceuticals, advanced batteries and rare earth minerals supply chains and a one-year review of six sectors of the economy – follows bipartisan calls from Congress cautioning about the dangers of a semiconductor shortage.

“Right now, semiconductor manufacturing is a dangerous weak spot in our economy and in our national security,” Senator Chuck Schumer said Tuesday after directing committees to begin crafting legislation to support the U.S. semiconductor industry. “We cannot rely on foreign processors for the chips. We cannot let China get ahead of us in chip production.”

Ahead of signing the executive order, President Biden met with Congressional leaders from both parties, which he called “the best meeting” since the start of his presidency.

President Biden noted the importance of building multilateral support to secure U.S. supply chains. “In some cases, building resilience will mean increasing our production of certain types of elements here at home. In others, it’ll mean working more closely with our trusted friends and partners, nations that share our values, so that our supply chains can’t be used against us as leverage.”

China Tech Threat commends both President Biden and Leader Schumer for recognizing the real and growing threat of China in the semiconductor and technology space. Taking action at all levels of government is critical to ensure economic and national security of the United States.

Read the order here and the fact sheet here.