Home U.S As chip shortage cripples auto production, Biden prepares to step in

As chip shortage cripples auto production, Biden prepares to step in

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President Joe Biden signs an executive order on climate change, in the State Dining Room of the White House on Jan. 27, 2021, in Washington.

The auto industry might get federal relief from the shortage of semiconductor chips that has crippled vehicle production over the past several weeks. 

President Joe Biden is preparing to sign an executive order Wednesday to review the U.S. supply chains of products in key industries, including semiconductor chips that are used in various electrical components for cars, personal electronics, military equipment and other items.

It is a proactive step to mitigate further production disruptions to the auto industry, which has been hit hard by the chips shortage. 

Demand for the chips is up in part because of the COVID-19 pandemic and an increased use of laptop computers, 5G phones, gaming systems and other IT equipment that use the chips. Cars use them in a variety of parts and infotainment systems. 



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