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“Historical Damage” From Chip Shortage: White House

The White House held a classified briefing overnight in which the chip shortage was earmarked as a major threat to economic and national security.

This comes as US lawmakers push Congress to pass A$69.3 billion in funding in order to fortify the country from further supply chain issues.

The classified briefing was in order to “discuss the urgent need to invest in made-in-America semiconductors as well as research and development that will protect our economic and national security,” the White House said.

“A significant interruption to our supply of semiconductors could cause historic damage to the U.S. economy – damage far greater than the impact of chips shortages on the American auto industry right now – and would undercut our technological competitiveness and military advantages over adversaries globally.”

The Biden administration pointed out that, in 1990, the US produced around 40 per cent of global semiconductors, while that number now sits at just 12 per cent.