Semiconductor shortage: the United States wants to regain control

Audio 03:54

Due to the global semiconductor shortage, US automaker Ford has cut production of its F-150 pickup.

AP - Carlos Osorio

By: Aabla Jounaïdi Follow

8 mins

TSMC in Taiwan and Samsung in South Korea.

The vast majority of semiconductor production is concentrated in Asia, these components so vital to industry that their shortage in recent months has slowed down entire sectors such as the automotive industry and the manufacture of telephones.

In Washington, President Joe Biden seems to want to change the game.

This Monday, he made an appointment with American industrialists.

The challenge: to put the United States back at the center of the global semiconductor map.

Publicity

In the United States, a pioneer country in this technology, until fifteen years ago, a company like Intel controlled the entire chain.

But now, it must turn to Taiwan and South Korea, whose companies concentrate almost the entire market.

The global shortage that began last December has given voice to those who demand the return of industrial sovereignty in this area.

“ 

Bring our factories back

 ”.

US President Joe Biden, in his $ 2 trillion stimulus package under negotiation in Congress, is devoting a portion ($ 50 billion) to funding semiconductor research and manufacturing.

Joe Biden is also pushing for a bill in the Senate that goes in the same direction.

American industrialists behind their president

Yesterday, during a virtual summit, around representatives of the Biden administration, there were officials from General Motors who are still anticipating several months of production disruption.

A question still needs to be decided… If the country were to see semiconductor factories flourish again, which sector would they serve as a priority?

Automotive, telephony, or even the defense industry?

All this is far from being recorded.

The latest studies estimate that to be completely self-sufficient in semiconductors, the United States would have to invest not 50 but 1000 billion dollars.

And that would lead to higher prices which would be passed on to consumers.

Put Beijing offside

The standoff with Beijing that began with the Trump administration continues with the new team.

It even hardens.

The list of Chinese technology companies banned from doing business with American companies in the name of national security has grown.

At the same time, tracks of industrial alliances are emerging between the United States and Japan, and even Europe to isolate China.

With as a bridgehead, the GlobalFoundries group, the only Western competitor in the field of semiconductor foundries.

In China, at the same time, the authorities are also pushing for more production capacity in the field of semiconductors.

They make massive investments, to free themselves from Taiwanese and Korean equipment, but also American and European tools.

For the time being, without achieving the expected results.

IN SHORT

Turkey, Libya confirm controversial maritime delimitation agreement

Controversial, because it puts the Mediterranean neighbors, in particular Greece, before a fait accompli.

But it cements the relationship between Ankara and the government in Tripoli.

Yesterday, the Turkish President and the Libyan Prime Minister reaffirmed this agreement.

Accompanied by trade and cooperation agreements.

Turkish companies, already well established before the war, could participate in the construction of power plants, a new terminal at the airport, a shopping center, or even in prospecting for hydrocarbons.

Since the establishment of the transitional government, visits by foreign delegations have increased in Libya.

According to the Africa Intelligence site, the CEO of Total, the French Patrick Pouyanné himself is expected in Tripoli next week.

Canadian government flies to the aid of national carrier Air Canada

Until now, he has refused to come to the aid of the sector.

But an agreement for a financial assistance plan in the form of loans was reached yesterday to save Air Canada which saw its turnover plummet by 70%.

The state provides support of around 3.9 billion euros.

Conditionally: reimburse customers whose tickets have been canceled due to the pandemic.

And no longer cut jobs.

The company has already laid off more than 20,000 employees since the start of the crisis.

Newsletter

Receive all international news directly in your mailbox

I subscribe

Follow all the international news by downloading the RFI application

google-play-badge_FR

  • Economy

  • United States

  • China

  • Raw materials