- Industry-wide chip shortages have disrupted production in the electronics and automotive industries.
- Due to this shortage some firms have reduced production.
- There is a growing demand for semiconductor chips in the US to reduce dependence on other countries.
In June, the Senate passed the CHIPS law for the first time and authorized USD 190 billion to strengthen the country’s research and technology facility so that it can compete with China. In February, the House passed its own version of the bill. The bills propose a variety of ways to address America’s competition with China on a range of topics, including trade and certain climate policies. The Senate decision was yet another move aimed at bolstering the country’s supply chains, increasing production in the US and outperforming China as well as the rest of the world.