U.S. Takes First Steps Toward Resilient Supply Chains
The marathon race that is the rebuilding of American technology supply chains has commenced, with cautious optimism that initial efforts will eventually yield resilient U.S. manufacturing and distribution frameworks for semiconductors and key energy technologies.
The pandemic exposed vulnerable supply chains for semiconductors, battery materials processing and cell assembly along with other strategic goods. Those gaps also underscored erosion of the U.S. manufacturing base. In short-term response to an ongoing chip shortage and the crying need for a long-term resilience strategy, the Biden administration last week released a 100-day review of U.S. supply chains.
The initiative and a follow-up review of the semiconductor and other sectors are seen as among the first, concrete steps toward weaning dependence on foreign suppliers and reshoring manufacturing of chips, lithium-ion batteries and other critical items.
Unpacking the recently completed supply chain review, Biden administration officials and industry representatives laid out a strategy for reconstituting technology distribution networks. Those efforts along with pending funding aimed at reviving U.S. chip manufacturing would encourage innovation and reduce the current heavy U.S. reliance on Asian foundry partners while rebuilding workforce skills that have eroded after decades of offshoring.