The US Department of Commerce on Monday unveiled its Microelectronics Early Alert System, a new system for detecting supply chain shortages in the semiconductor industry.
This system is part of President Biden’s program for strengthening supply chains in semiconductor manufacturing, batteries, critical minerals and pharmaceuticals. Biden signed an executive order on February 24 ordering 100-day supply chain reviews for these four industries. The 100-Day Semiconductor Industry Report highlighted the globalized and fragile nature of the semiconductor supply chain.
The new alert system of the Ministry of Commerce will consolidate information from producers and manufacturers. The goal of a centralized information collection system is to minimize interruptions in the semiconductor supply chain without companies revealing confidential business information to their competitors.
Semiconductors are essential to a number of major US industries, including the automotive industry and the tech industry. Global arrears can be caused by the smallest issues, such as a brief power outage in Taiwan. The largest semiconductor manufacturer, Taiwan Semiconductor Manufacturing Corp. (TSMC) also battled a historic drought in Taiwan. Semiconductor foundries depend on large amounts of water to maintain the supply of chips.
The United States is looking for other options to promote semiconductor independence in the future. The CHIPS for America Act would provide $ 52 billion for domestic semiconductor manufacturing and establish a scientific leadership at the National Science Foundation to promote emerging technologies.
The importance of semiconductor independence has been recognized by the European Union and China, both of which are exploring options for domestic semiconductor manufacturing.