moving boxes

Biden Administration Begins Supply Chain Review

Biden’s Executive Order

Yesterday, President Biden signed an executive order calling for a review of supply chains for important materials including semiconductors, pharmaceuticals, and rare earth minerals. The reviews will look into whether the US is producing enough of these materials domestically, or if the country is too dependent on foreign suppliers.

The 100-day review will also examine US supply chain vulnerabilities that include environmental changes and extreme weather. After identifying risks, the Biden administration will work with American companies to build more reliable domestic supply chains.

The Chip Shortage

One of the most substantial supply chain dilemmas facing the US at the moment is the chip shortage. These chips are used in electronics, appliances, cars, and other products.

The pandemic has caused production delays and other problems for chip supply chains. Meanwhile, the work from home boom has caused a surge in demand for laptops, smartphones, and other products that require chips.

The chip shortage has recently placed strain on automakers around the world, including major car companies in the US.

Looking Ahead

General Motors (GM) said that lost production resulting from the chip shortage could lower its profits by up to $2 billion this year. Ford (F) reports that its vehicle output could shrink by up to 20% during the first quarter of 2021. These are the types of situations that the Biden administration hopes to prevent.

As the Biden Administration conducts its reviews, it will also be planning concrete action in an effort to help strengthen American supply chains, create jobs, and prevent problems like the chip supply squeeze in the future. As a spokesperson from the administration said, “Make no mistake, we’re not simply planning to order up reports. We are planning to take actions to close gaps as we identify them.”

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender