What has happened?
- President Biden on Wednesday formally ordered a 100-day government review of potential vulnerabilities in S. supply chains for critical items, including computer chips, medical gear, electric-vehicle batteries and specialized minerals.
- The directive comes as U.S. automakers are grappling with a severe shortage of semiconductors, essential ingredients in the high-tech entertainment and navigation systems that fill modern passenger vehicles.
What is a chipset?
- A chipset acts like the motherboard’s communications center and traffic controller,
- It ultimately determines what components are compatible with the motherboard—including the CPU, RAM, hard drives, and graphics cards.
- It also dictates your future expansion options, and to what extent, if any, your system can be overclocked.
- Biden’s executive order also is aimed at avoiding a repeat of the shortages of personal protective gear such as masks and gloves experienced last year during the early months of the coronavirus pandemic.
- “The American people should never face shortages for the goods they rely on,” the president said at the White House before signing the measure.
What with Taiwan?
- Washington has stepped up its efforts to win more collaboration and investment from Taiwan’s key chip and tech companies after
- President Joe Biden signed an executive order to review critical U.S. supply chains.
- William Brent Christianson, the director of American Institute in Taiwan — Washington’s de facto embassy to the island —
- On Thursday met dozens of Taiwanese chip and supply chain executives to urge a closer partnership with the U.S.
- He also set out U.S. aims to attract more Taiwanese investment into the U.S.
- Representatives from the German Institute Taipei and the Japan-Taiwan Exchange Association, the de facto embassies of Japan and Germany in Taiwan, also joined the meeting.
- Washington wants to bring critical parts of the chip supply chain onto its own soil.
- The president has said supply chain vulnerability should not be used as “leverage” against the U.S.
Chipmakers in Taiwan
- Chipmakers including United Microelectronics, Powerchip Semiconductor Manufacturing, Vanguard International Semiconductor, MediaTek, Nanya Technology, and many others Joined the closed-door discussion.
- Some key material and equipment vendors including LCY Chemical — which has just signaled its intention to make its largest overseas investment in the U.S.
- As well as TongTai Machine and Tool, Taiwan’s biggest machine tool builder, were also invited.
- Many U.S. and European companies’ local executives also joined the talk, including Qualcomm, Micron, Texas Instruments, Synopsys, Arm, and STMicroelectronics.
- Washington has been urging a reshaping of global supply chains amid the ongoing tech war with Beijing and the global coronavirus
- Taiwan is playing an important role in supporting the U.S. campaign given the democratic-ruled island’s advanced tech supply chains.
- China views Taiwan as a wayward province and does not rule out the option to take control of the island by force.
- The AIT hosted its first public forum on supply chain restructuring in Taipei in September last year,
- Together with EU, Canadian & Japanese counterparts, to publicly advocate decoupling from China.
Why chipsets are important?
- Like a smartphone, a modern car also uses
- In fact, a Deloitte analysis suggests that electronics make for 40% of a new car’s total cost.
- Over the past few years, automakers have increasingly become dependent on semiconductors and electronic components.
- More cars now have a power steering, tablet-like display, Wi-Fi connectivity and cellular connectivity.
- That means to make a car you need semiconductors and without access to the chips, it is impossible to manufacture a vehicle.
- A delay in getting the chips will halt production lines and automakers can’t keep up with a boom in demand.
- That’s exactly what’s happening now.
Q) Identify this country?
- A chain of islands
- Became independent in 1965
- The lowest country on Earth
- Slowly disappearing as climate change raises water levels in the Indian Ocean
- The Comoros
- The Maldives
- The Solomon Islands
- The Mauritius