President Biden orders review of semiconductor shortages amid PS5 and Xbox stock issues

President Joe Biden is taking steps to find solutions to the current semiconductor chip shortage, a manufacturing problem that has affected newer game consoles, among other things.

The impact of the coronavirus pandemic on production has led to a shortage of semiconductors and other key products, affecting several industries in the US and forcing many to reduce manufacturing.

Reuters reports that the president yesterday signed an executive order launching a 100-day review of supply chains for four critical products, including semiconductor chips.

Other products covered by the review include pharmaceuticals, rare earth minerals, and large capacity batteries for electric vehicles.

The order will focus on the areas of communications technology, transportation, energy, food production, public health and defense.

But the hope is that improvements in the supply of semiconductor chips could benefit the production of both PS5 and Xbox Series X | S, as well as high-end PC graphics chips.

According to the Semiconductor Industry Association, US semiconductor companies account for 47% of all chip sales worldwide, but only 12% of manufacturing is done in the US.

The president has also pledged to seek significant investment in efforts to resolve this situation.

“I am directing senior officials in my administration to work with industry leaders to identify solutions to the semiconductor deficit,” he said.

“Congress has cleared a bill, but they need … $ 37 billion to make sure we have this capacity. I will push for it too.”

A recent report from Ampere Analysis suggested that supply limitations have prevented the new PlayStation and Xbox consoles from outperforming the launch sales of their predecessors.

Following Microsoft’s most recent financial results, CFO Amy Hood said the company expects Xbox sales to “still be limited by supply” during the first quarter of 2021.


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