Biden signs an EO mandating a 100-day review of supply chains, including for semiconductors and rare-earth metals, amid chip shortages

The president signed an executive order with the aim of eventually increasing domestic production of critical materials

Wall Street Journal 2021-02-25 Alex Leary

Context & Ripple Effects

The order follows the administration’s stated effort to address the global chip shortage and formalizes the supply-chain strategy outlined in a draft order focused on chips, batteries, and rare earths. It turns an immediate shortage response into a cross-sector federal review tied to domestic production.

Related coverage shows the review became an early step in a broader policy sequence: by June, the administration was pairing supply-chain measures with a trade-practices enforcement strike force.

First-order effects

The Biden administration must assess vulnerabilities in semiconductor and rare-earth supply chains within 100 days, creating a federal basis for later domestic-production measures.
Companies dependent on chips and critical materials gain a clearer signal that the administration is treating supply resilience as a policy priority rather than only a shortage-management issue.

Second-order effects

Federal supply-chain policy broadens beyond chip availability to the linked inputs named in the review, including rare-earth metals and batteries.
The review’s findings can channel subsequent administration action toward both supply-chain support and trade enforcement, as reflected in the later announced steps.

Third-order effects

If this review-to-action sequence holds, US industrial policy will increasingly connect domestic capacity goals with efforts to reduce reliance on China-centered supply chains.
Semiconductor planning becomes a longer-cycle government demand and resilience issue, rather than a response limited to the immediate shortage.

The trend: US policy is moving from diagnosing supply-chain bottlenecks to using domestic-capacity and trade tools to reshape strategic technology inputs.

Discussion

@vijayshekhar Vijay Shekhar Sharma on x
In moment of truth, you need your own - well nurtured domestic businesses to be on your side. Proven time and again in last one year: Extreme dependence, on foreign tech can bite you back. Every superpower in world knows that. I am hoping India is watching & learning. https://twi…
@danielfiott Daniel Fiott on x
“Such recommendations may include sustainably reshoring supply chains and developing domestic supplies, cooperating with allies and partners to identify alternative supply chains” — Presidential Executive Order, 24 Feb 2021 Read here: https://www.whitehouse.gov/... https://twitte…
@aparanjape Amit Paranjape on x
Biden signs executive order to address chip shortage through a review to strengthen supply chains Senate Majority Leader Chuck Schumer, D-N.Y., said that “semiconductor manufacturing is a dangerous weak spot in our economy and in our national security.” https://www.cnbc.com/...
@briandeesenec Brian Deese on x
Today, ⁦@POTUS⁩ will launch supply chain review of: 1. Semiconductors 2. High capacity batteries 3. Pharmaceutics & active ingredients 4. Critical minerals, incl rare earths Resilient supply chains = better jobs, innovation and nat'l security https://www.nytimes.com/...
@nanhayworth Nan Hayworth on x
Happy to extend praise when it's warranted: President Biden's right on this one! Now cut taxes and deregulate and open the economy! Goal is to shift from reacting to supply-chain crises to getting ahead of them, one Biden administration official said https://www.wsj.com/...
@martijnrasser Martijn Rasser on x
Supply chain EO calls for 1-year industrial base reviews of: - defense industry - public health and bio preparedness - information and communications tech - transportation and supply chain reviews for: - ag commodities - food production https://www.whitehouse.gov/...
@openmarkets @openmarkets on x
And it only took America decades to do this! https://twitter.com/...
@chrismegerian Chris Megerian on x
First it was masks. Now it's computer chips. The pandemic fractured global supply chains, exposing weaknesses that have festered for years. President Biden says he wants to fix it. https://www.latimes.com/...
@gregorymckenna Greg McKenna on x
The re-wiring of global supply chains will have implications for #markets and the #economy in the years ahead Inflationary? https://twitter.com/...
@tekstrategist Jim McGregor on x
President Biden signs executive order to review semi supply chain due to chip shortage. Pleased to see the focus on the entire supply chain - raw materials, research, IP, design tools, equipment, and an educated workforce are ALL important! https://www.wsj.com/...
@sdmoores Simon Moores on x
The White House sets its sights on EV lithium ion batteries as expected. This was never just about semi conductor chips ... ⁦@EnergyGOP⁩ ⁦@EnergyDems⁩ focus FACT SHEET: Securing America's Critical Supply Chains | ⁦@WhiteHouse⁩ https://www.whitehouse.gov/...
@pstasiatech Paul Triolo on x
Executive Order on America's Supply Chains https://www.whitehouse.gov/...
@chrismegerian Chris Megerian on x
In a not-too-subtle acknowledgment that the United States has been too reliant on Chinese manufacturing, President Biden will order a review of supply chains for semiconductors, rare earth minerals and more https://www.latimes.com/...
@syrahresources @syrahresources on x
.@POTUS moves to secure US supply chains for critical minerals as demand for new energy tech like EV batteries continues to rise: https://www.whitehouse.gov/... The rapidly accelerating expansion of the EV + renewable energy sectors continues to drive enormous new demand for #gra…
@arturo_sarukhan Arturo Sarukhan on x
The result of this SHOULD be a deepening of joint supply chains and production platforms -and the alignment of essential sectors- between the 3 partners in #NorthAmerica. The driving paradigms: #BuildBackBetter Together and #BuyNorthAmerican 🇨🇦🇺🇸 🇲🇽 👇🏽 https://www.washingtonpost.…
@prof_klinger Dr. J M Klinger on x
It's about time we address the entire #RareEarths supply chain instead of fixating on opening new mines, which would only deepen US supply chain issues w/o investing in manufacturing, R&D, and recycling. Glad to see some clearer leadership on this. https://www.wsj.com/...
@sensherrodbrown Sherrod Brown on x
Good. Let's make the critical supplies we need right here in the U.S. - better yet, in Ohio. https://www.washingtonpost.com/ ...
@brynnespeak Brynne Kennedy on x
COVID-19, semiconductor shortages and recent economic shocks showed the vulnerabilities in our supply chains and opportunities to create new American jobs. Solving this is critical for our economy and national security. This is a good start👇 https://www.wsj.com/...
@sammy_roth Sammy Roth on x
Joe Biden is ordering a review of critical U.S. supply chains, seemingly including lithium and rare earth metals needed for electric cars: https://www.latimes.com/... via @ChrisMegerian
@nikkeiasia @nikkeiasia on x
The U.S. imports about 80% of its rare earths from China, and relies on the country for as much as 90% of some medical products. https://asia.nikkei.com/... https://twitter.com/...
@nikkeiasia @nikkeiasia on x
Restructuring supply chains is likely to take quite some time, particularly in semiconductors. Because the number of top chipmakers in the world is limited, these companies have the leverage to decide whether to follow America's lead. #USChina https://asia.nikkei.com/...

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