Electronics Update

Your daily news room for the electronics industry

The Biden Plan for the Electronics Industry

The 2020 presidential elections in the United States were a lengthy and exhausting process. From rioters destroying business and private property, via irregularities in mail-in polling and last but not least, a fairly long counting process, accompanied by lawsuits from the current US president. In the end, the Democrats won the election, and Joe Biden becomes the 46th president of the United States, with Kamala Harris as Vice President.

We asked ourselves: What’s the Biden plan for electronics?

Image by Karolina Grabowska on Pexels

Usually, we avoid political topics, given their polarizing nature. But the role of President of the United States is a very important one all over the world, affecting many industries and also entire economies. That’s why we took a closer look at the Biden agenda for the electronics industry. All quotes related to this can be accessed via Joebiden.com.

What does the Biden election mean for the electronics and manufacturing industry?

Joe Biden’s campaign released a variety of documents, that provide a first impression of what’s ahead for the future of the United States. In essence, he pushes for more domestic production. Especially for what he calls „critical products“, such as semiconductors.

„As we build the American economy back better, Biden will put Americans to work making critical products, from medical equipment and supplies to semiconductors and communications technology, here in the United States.“

The plan is to manufacture the majority of high tech materials domestically in order to reduce dependencies from foreign manufacturing capabilities. This plan will be backed by $300 billion investment in R&D to improve US market position in a diversified portfolio of manufacturing industries, over the next four years.

„The $300 billion in innovation funding will power home-grown industries that can lead the world and create jobs in advanced materials, health and medicine, biotechnology, clean energy, autos, aerospace, artificial intelligence, telecommunications, and more.“

Another new focus section that surfaced, is renewable energy. Contrary to President Trump’s policy regarding climate change, e.g. leaving the Paris climate deal, Biden aims to improve the US‘ position in this field of technology as well. The main key elements of his campaign are as follows:

  1. Ensure the U.S. achieves a 100% clean energy economy and reaches net-zero emissions no later than 2050 
  2. Rally the rest of the world to meet the threat of climate change.
  3. Investments in smart infrastructure 
  4. Stand up to the abuse of power by polluters
  5. Fulfil our obligation to workers and communities who powered our industrial revolution and subsequent decades of economic growth
  6. Biden has committed that Biden for President will not accept contributions from oil, gas and coal corporations or executives

A voice from across the pond

The US foreign trade changed under the presidency of Donald Trump. European and East Asian imports have been subject to a variety of new tariffs and import restrictions. When asked on how the election of Joe Biden as US president will affect transatlantic technology rivalry, Infineon CEO Reinhard Ploss answered:

„We do not expect the competition for technological leadership to change (…). This will continue under a President Elected Joe Biden. However, Infineon expects a more cooperative dialogue than before. Europe must assert itself in the technological struggle with the USA and China.“

Great political promises are one thing. Their successful implementation however, is often subject to difficulties and compromises.

In the end, we wish Joe Biden all the best in his new role as 46th President of the United States.

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