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The White House is again using the Defense Act to address the chip deficit: the report


To address the semiconductor crisis, the Biden administration has again suggested enacting a defense production law, a new report said.

Bloomberg News reported Thursday that Commerce Secretary Gina Raymondo said the Cold War-era law is being considered as a way to bring better transparency from companies, ease production barriers and identify potential stockpiles of chips.

Raimondo held a virtual meeting on Thursday with executives of technology companies and auto makers, including Intel INTC.
+ 0.99%,
Apple AAPL,
+ 0.67%,
Ford F,
+ 3.63%
And GM GM,
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To discuss the ongoing global chip shortage, which is hampering the production of everything from electronic gadgets to new cars.

The Commerce Department is currently seeking supply-discipline information from a number of organizations on a voluntary basis within the next 5 days. But companies have reportedly dragged their feet to transfer that data. It could force companies to return that information under defense law, Bloomberg reported, possibly allowing the government to get a better picture of the situation so that possible solutions can be found.

The White House said in a statement Thursday that the goal is to “understand and measure where obstacles may be.”

The White House is launching a precautionary measure to reduce covid-related shutdowns of semiconductor plants, especially in Southeast Asia, the Wall Street Journal reports.

The Defense Production Act gave the president broad powers to allocate resources and production, and former President Donald Trump used it to increase ventilator production in the first months of the epidemic, and President Joe Biden used it to help increase vaccine production.

The Biden administration indicated it could enforce defense laws for several months, and Biden issued an executive order in February to review U.S. supply discipline.



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