Biden to visit computer chip unit in South Korea, upcoming U.S. factory – Gadget Clock
President Joe Biden will open his Asia trip with a focus on the US tech sector, visiting a Samsung laptop chip factory on Friday that could serve as a model for a $17 billion semiconductor fab that the company Korean electronics built outside of Austin, Texas.
The appointment may be a nod to one of Biden’s top domestic priorities of accelerating the supply of laptop chips. A shortage of semiconductors over the past 12 months has affected the supply of automobiles, kitchen equipment and other items. That tight supply precipitated increased inflation that crippled public approval for Biden and precipitated his government to focus on growing home manufacturing.
Biden will grapple with a mess of international coverage points during his six-day visit to South Korea and Japan, but he’s also crafted an itinerary clearly intended to address his viewers’ issues at home as well.
Previewing the trip aboard Air Pressure One, White House National Security Adviser Jake Sullivan said Samsung’s investment in Texas would mean “well-paying jobs for people and, more importantly, it would imply greater chain resilience.”
Welcoming Biden to the factory in South Korea would be the country’s new president, Yoon Suk Yeol, and Samsung Electronics vice president Lee Jae-yong. Yoon is a political newcomer who has become president, his first elected office, barely more than every week in the past. He campaigned to take a tougher stance against North Korea and strengthen the 70-year-old alliance with the United States.
Some of the computer chip scarcity is the result of strong demand as much of the world has emerged from the coronavirus pandemic. However, the coronavirus outbreaks and other challenges have also precipitated the shutdown of semiconductor vegetation. US government officials have estimated that chip production will not be within the limits they want until early 2023.
Automakers like Ford, GM and Fiat Chrysler have had to cut car manufacturing in 2021 due to a shortage of microchips, which are largely made in Asia. Supply constraints have resulted in high costs and therefore they may increase even more. Some corporate teams are asking Congress to fund a plan that could get additional chips made in the United States. Jordan Crenshaw of the U.S. Chamber of Commerce Technology Engagement Center explains more.
International laptop chip sales totaled $151.7 billion in the first three months of this year, a 23% rebound from the same period in 2021, according to the Semiconductor Business Affiliation.
More than 75% of global chip manufacturing comes from Asia. This is a potential vulnerability that the United States hopes to protect against with additional domestic production and public funding in the sector through a bill currently being negotiated in Congress.
The risk of Chinese language aggression against Taiwan could likely reduce the flow of high-end laptop chips that may be sought after in the United States for Navy equipment as well as customer items. Similarly, airtight North Korea has tested ballistic missiles amid a coronavirus outbreak, a potential threat to South Korea’s manufacturing sector is set to escalate.
When it comes to chip manufacturing, China leads the world with a 24% share, followed by Taiwan (21%), South Korea (19%) and Japan (13%). Only 10% of chips are made in the United States, according to the Semiconductor Business Affiliation.
Samsung announced the Texas-based factory in November last year. It hopes to start operations in the second half of 2024. The South Korean electronics giant chose the positioning based on various components, including government incentives and the “readiness and stability” of local infrastructure. .
In addition to Samsung, Biden also highlighted in his last speeches the announcement by the American agency Intel to build a semiconductor factory near Columbus, Ohio.
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