Biden Has Big Plans for U.S. Chips and EVs
Over 37 million Americans watched the State of the Union address Tuesday night.
I tuned in to hear President Joe Biden’s stance on the Russia-Ukraine conflict.
But his main focus wasn’t on foreign policy.
Instead, Biden laid out his plan to turbocharge America’s tech industries.
Whether or not you support Biden, you have to admit this is a huge deal.
“Made in America” Is More Important Than Ever
Biden focused on two critical areas: semiconductors and electric vehicles (EVs).
As you can see in the chart below, Taiwan and South Korea make over three-fourths of the world’s chips.
(Sources: TrendForce and CNBC.)
Supply chain problems have already hurt U.S. EV companies.
And with global tensions getting worse, “Made in America” is more important than ever.
Just look at what’s happening right now over in Europe with automakers BMW and Volkswagen.
Their suppliers in Ukraine are under attack. So they had to slow down production because they can’t get the electronic parts they need.
A similar situation would be disastrous for U.S. manufacturers.
But Biden’s agenda clears a path for a revolution in American tech.
The Biggest Investment in Manufacturing in American History
The Senate passed the bipartisan U.S. Innovation and Competition Act back in June 2021.
This massive $250 billion bill will:
- Boost U.S. chip production.
- Help develop technologies like artificial intelligence and robotics.
- Further space exploration.
The House passed an altered version of the bill last month.
Once the two chambers finish ironing out the details, U.S. manufacturing will boom.
Companies are already making plans to profit.
In fact, Intel CEO Pat Gelsinger attended the State of the Union address.
His company plans to invest $100 billion in U.S. chip factories.
Biden called it “the biggest investment in manufacturing in American history.”
On top of that, Ford is investing $11 billion in EVs, and GM is spending $7 billion on electric vehicles.
But funding isn’t the only way Biden plans to support EVs.
He also wants to build a national network of 500,000 EV charging stations.
Get Ready for Huge Demand for Chips and EVs
U.S. companies are gearing up for a tech boom unlike anything we’ve seen before.
Ford already announced that it’s going to run its EV segment as a separate business called Ford Model e.
And the U.S. Innovation Act could be on Biden’s desk in just a few weeks from now.
So it’s time to upgrade your portfolio and get ready for huge demand for semiconductors and EVs.
Ian King outlines one smart way to do that in his new presentation on the EV boom.
Assistant Managing Editor, Banyan Hill Publishing
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