>> WELCOME BACK TO OUR NEWS
WRAP GLOBAL TECH
LEADERS ARE URGING THE JOE
BIDEN ADMINISTRATION TO ADDRESS
A CRITICAL SEMICONDUCTOR CHIP
SHORTAGE IN THE U.S.
IN A LETTER TO PRESIDENT BIDEN
THE INFORMATION TECHNOLOGY
INDUSTRY COUNCIL ASKS FOR
FUNDING FOR THE
SHIPS FOR AMERICA ACT TO TAKE
ON SUPPLY ISSUES ACROSS SECTORS
JOINING US NOW IS JASON
OXMAN PRESIDENT AND CEO OF THE
INFORMATION TECHNOLOGY INDUSTRY
COUNCIL JASON GREAT TO HAVE YOU
THANKS FOR TAKING THE TIME SO
WHAT EXACTLY DO YOU WANT TO SEE
THE JOE BIDEN WHITE HOUSE DO TO
HELP ALLEVIATE THIS CHIP
SHORTAGE.
>> WELL WE'VE SEEN
UNPRECEDENTED DEMAND FOR
PRODUCTS THAT USE ANY
CONDUCTORS ACROSS ALL ASPECTS
OF OUR PANDEMIC FLIGHT.
>> WE'RE ALL WORKING FROM HOME.
WE'RE LEARNING
FROM HOME.
>> ACCESS TO OUR DOCTORS FROM
HOME AND WE'VE SEEN THAT SAME
DOCTOR DEMAND BEGIN LOT OF
DIFFERENT INDUSTRIES. WHAT
WE'RE ASKING THE BIDEN
ADMINISTRATION TO DO IS FOCUS
ON A COUPLE OF THINGS ONE.
LET'S LOOK AT SUPPLY CHAIN
ISSUES WITH AN EYE TOWARD THE
WE NEED TO INVEST IN
MANUFACTURING CAPABILITY FOR
SEMICONDUCTORS BE GREAT TO SEE
THAT MANUFACTURING CAPABILITY
BUILT HERE IN THE UNITED
STATES. WE THINK THE BEST WAY
TO DO THAT
IS TO FUND THE CHECKS ACT WHICH
AS YOU NOTED IS LEGISLATION
THAT CONGRESS PASSED
IS FOCUSED ON BUILDING
MANUFACTURING CAPABILITY.
SEMICONDUCTOR MANUFACTURING
CAPABILITY. HERE IN THE U.S.
WE'VE HAD A LOT OF
ANNOUNCEMENTS FROM COMPANIES
ARE LOOKING TO DO SO AND WE
THINK WITH FUNDING FOR THE
TROOPS ACT WE CAN MAKE THAT
HAPPEN.
>> I'M JASON I KNOW IF YOU'RE A
FAN OF READ IT, BUT ONE OF MY
FAVORITE SUBREDDIT HAS CALLED
EXPLAIN LIKE I'M 5 AND SO
THE SEMICONDUCTOR CONVERSATION
IS REALLY IMPORTANT TO COVER
HERE ON CHEDDAR ALL THE TIME
I'VE REALIZED THAT
VERY FEW PEOPLE KNOW WHAT A
SEMICONDUCTOR IS SO IF YOU CAN
EXPLAIN IT
TO ME AND OUR VIEWERS LIKE I'M
5 JASON, WHAT IS A
SEMICONDUCTOR.
>> SO YOU HEAR THEM REFERRED TO
AS CHASE
THEY ARE THE VERY TINY DEVICES
THAT POWER EVERYTHING
ELECTRONIC YOU HAVE SOMETHING
CONDUCT JURORS IN THE FORM OF
CHIPS INSIDE OF EVERYTHING FROM
YOUR MOBILE PHONE TO YOU
COMPUTER TO YOUR MONITOR YOUR
PRINTER
YOUR LAPTOP. EVERYTHING IN
BETWEEN YOU ALSO HAVE THEM IN
LARGER DEVICES LIKE CARS, THEY
POWER BUILDINGS SEMICONDUCTORS
ARE REALLY THE LIFELINE THAT
MAKES ELECTRONIC DEVICES
POSSIBLE AND THEY ARE
INCREDIBLE DEMAND BECAUSE
DURING THIS PERIOD OF TIME
WHERE WE'RE ALL INVESTING IN
ELECTRONIC DEVICES WHERE PEOPLE
ARE OUT POWER IN THERE HOMES AS
THEY ONCE DID THEIR OFFICES.
THE DEMAND FOR SEMICONDUCTORS
HAS NEVER AND HIGHER THERE ARE
GREAT COMPANIES IN THE U.S. AND
AROUND THE WORLD MAKE THOSE ANY
CONDUCTORS THEY'RE DOING
EVERYTHING THEY CAN TO ADDRESS
THAT AND THE ONE THING WE'RE
VERY FOCUSED ON THE VINE AND
THE STRANGE IS HOW DO WE
INCREASE THE MANUFACTURING
CAPABILITY WANT TO SEE THAT
TAKE PLACE IN THE U.S.
COMPANIES
LIKE INTEL TALK ABOUT EXPANDING
MANUFACTURING CAPABILITY IN THE
U.S., BUT IMPORTANTLY
INTERNATIONAL COMES LIKE TSMC
AND
SAMSUNG ARE LOOKING TO BUILD
EXPANDING MANUFACTURING
CAPABILITIES IN THE U.S. WE
WANT TO SEE THAT HAPPEN.
WE WANT TO INVEST IN
INFRASTRUCTURE TO HAPPEN IT'S
GOING TO CREATE JOBS HERE IN
THE U.S. WHERE QIAN A BIDEN
ADMINISTRATION WORK ON IT.
>> REALLY APPRECIATE THE WANT
TO ANSWER THAT QUESTION IN SUCH
SINK PROFESSIONAL WAY THANK YOU
FOR DOING,
SO SIR. TALK TO US ABOUT THE
WAYS THAT THE PANDEMIC HAS
HELPED CONTRIBUTE TO THE
CHIP SHORTAGE.
A CRISIS SITUATION. THIS THIS
CONUNDRUM THAT WE FIND
OURSELVES IN BECAUSE IT HAS
GOTTEN WORSE.
>> IT HAS AND THE DEMAND
ON PRECEDENT AND ACROSS ALL
INDUSTRIES OF THE PANDEMIC HAS
IMPACTED,
YOU KNOW THE WAY THAT IS
ACTUALLY A GOOD THING BECAUSE
WE WANT THE DEMAND FOR ECONOMIC
ACTIVITY
TO INCREASE. BUT WHAT WE'VE
SEEN PEOPLE IN THE U.S. IN
PARTICULAR ARE
WORKING REMOTELY AND THAT MEANS
THAT THEY NEED TO DUPLICATE THE
ARCHITECTURE THAT THEY HAVE HIM
IN THERE PREVIOUS BUSINESS
LOCATIONS
AT HOME. SO THEY'RE BUYING
LAPTOPS PRINTERS MONITORS WEB
CAM TIMES AND
THE LIKE WE ALSO THE NATION'S
STUDENTS LEARNING FROM HOME I
HAVE HIGH SCHOOLERS TO ARE
LEARNING FROM HOME
AND THAT REQUIRE INVESTMENT IN
LAPTOPS AND MONITORS AND WEB
CAMS MICROPHONES AND HEADPHONES
AND
THE LIKE ALL OF THOSE DEVICES
REQUIRE SEMICONDUCTORS SO THE
PANDEMIC IS INCREASING DEMAND
FOR
ELECTRONIC DEVICES AND AS A
RESULT OF THAT DEMAND FOR
SEMICONDUCTORS.
>> I KNOW THE AUTO INDUSTRY IS
ONE OF MANY AS YOU SAID THAT
THAT GETS REALLY IMPACTED BY
THIS IF THIS SUPPLY SHORTAGE
CONTINUES.
WHAT DO YOU SEE AS BEING AMONG
THE GREATEST POTENTIAL IMPACT
ON HOW BAD COULD THINGS GET.
>> WELL THE AUTO INDUSTRY IS ON
THE STAND FOR THE CUSTOMER OF
THE SEMICONDUCTOR INDUSTRY
ABOUT 10% OF SEMICONDUCTORS
SANCHO TO THE
AUTO INDUSTRY AND AS WE ALL
KNOW THE AUTO LAST EXPENSES
SLOWDOWN IN DEMAND. MANY OF
THEIR SUPPLIERS DECREASED THEIR
WATERS OF SENDING UP TO
MICHELLE THE MINUTES TICKING
BACK UP AND THAT DEMAND IS
INCREASING AS WELL. IT'S VERY
IMPORTANT YOU KNOW WE LEFT.
MARKET FOR SAYS THE DRIVE THAT
DEMAND AND INCREASED SUPPLY
PLAY OUT TO MAKING UP FOR MANY
FACTORS ARE DOING EVERYTHING
THEY CAN TO MEET THAT SUPPLY,
YOU KNOW JUST WANT TO MAKE SURE
WE DON'T PICK WINNERS AND
LOSERS AMONG THE CUSTOMERS OF
SEMICONDUCTOR COMPANIES.
BUT THE MOST IMPORTANT LONG
TERM SOLUTION WE THINK IS
INVESTING IN THAT MANUFACTURING
NOBODY THROUGH A COMBINATION
INCENTIVES FOR CONSTRUCTION
MANUFACTURING HERE IN THE U.S.
WE ALSO WANT TO LOOK AT TAXES
AND IT WAS AS A AS A
POSSIBLE PATH TO INCREASE
MANUFACTURING CAPABILITY AS
YOU KNOW, THIS IS A SHORT-TERM
SUPPLY ISSUE, BUT IT'S LONGER
TERM SUPPLY CHAIN WE'RE
ENCOURAGED BY NAME AND TRICIA
IS LOOKING AT HOW
SUPPLY CHAINS. CAN BE IMPROVED
IN THE FUTURE AND WE THINK
INVESTING IN
MANUFACTURING CAPABILITY.
>> SO REALLY YOU KNOW LET ME
LET ME TELL YA BECAUSE I'M
RIGHT AT TIME JASON REAL QUICK
TO THE BIDEN WHITE HOUSE
RESPOND TO YOUR LETTER.
>> WE HAVE BEEN IN CONVERSATION
WITH THE BY MY HOUSE WITH
OFFICIALS ABOUT
PATHWAYS FORWARD. AND WE'RE
ENCOURAGED THEIR FOCUS ON
SUPPLY CHAIN AND MANUFACTURING
CAPABILITIES AND AND IN ORDER
TO INVESTMENT HERE IN THE U.S..
>> THIS IS A REALLY IMPORTANT
TOPIC I HOPE YOU'LL CONSIDER
COMING BACK TO FURTHER DISCUSS
WITH US ESPECIALLY IF YOU HAVE
YOUR BACK AND FORTH WITH THE
WHITE HOUSE AND THANK YOU FOR