WEBVTT

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ADAM SHAPIRO: We
want to switch gears

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to something that is immediately
affecting millions of people.

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And that's the
semiconductor shortage.

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If you tried to
buy a car, then you

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know there's a trouble out there
because other manufacturers are

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having to shut down
production because

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of the semiconductor shortage.

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Let's bring in Rick Newman,
because he is looking at why

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the Biden administration is
unable to fix this shortage,

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and if they were to follow
certain recommendations why

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it may just be a boondoggle.

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Why?

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RICK NEWMAN: The
Biden administration

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is very aware of this.

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I mean, they've been talking
about it basically ever

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since Biden got into office.

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There has been a review of
the supply chain stability,

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with semiconductors being
one of the main focuses.

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And what the Biden
administration wants to do

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is bring more
semiconductor manufacturing

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back to the United States.

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And Congress may actually
pass as much as $50 billion

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to do that by later
this year, Adam.

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But here's the catch--

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that $50 billion would go toward
new manufacturing facilities.

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They take years to get in place.

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It can take three to four
years to build a semiconductor

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manufacturing facility.

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And in the meanwhile, in
terms of doing anything

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to ease the shortage right
now, which is really cutting

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into auto production and
employment in that sector,

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there just aren't enough of
these things to go around.

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The auto industry
did not prioritize

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these things correctly
when they were making

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their plans during COVID--

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the COVID pandemic and
the downturn last year.

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And they sort of went
to the back of the line

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for semiconductors.

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And there just are not any
more semiconductors to buy.

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And administration
officials have said,

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look, if we were to somehow
try to make semiconductors more

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available to the auto industry,
we would just be taking them

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from some other industries.

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So the majority of
semiconductors, of course,

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made outside the United States--

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the Biden administration
wants to get the US back

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into the business
of being a leader

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in semiconductor manufacturing.

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But if we get there,
it's going to take four,

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five, six, maybe even 10 years.