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Biden signs executive order on semiconductor supply chains

The executive order calls for reviews across federal agencies into the global supply chains used by four major industries: semiconductors, batteries, critical minerals and pharmaceuticals. The order offers an early insight into the Biden administration's approach to China, which will encourage an investment in U.S. manufacturing.

The initial reviews, which will last 100 days, will investigate whether supply chains in those industries are overly reliant on China and what can be done to bring manufacturing back to the U.S.

"I'm directing senior officials in my administration to work with industrial leaders to identify solutions to this semiconductor shortfall," Biden said before signing the executive order on Wednesday.

The telecommunications and semiconductor industries have hailed the executive order as a good first step, calling for increased investment from the government.

"We welcome today's executive order and stand ready to work with the Biden administration to ensure the strength and resilience of America's semiconductor supply chains," said Bob Bruggeworth, the board chair of the Semiconductor Industry Association. "As part of this effort, we urge the president and Congress to invest ambitiously in domestic chip manufacturing and research."

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