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PS5, Xbox Series X Component Shortage To Be Investigated, President Biden Says

The semiconductor shortage is ravaging the American economy, and an executive order will investigate how to fix it.

269 Comments

A semiconductor shortage brought on by the ongoing COVID-19 pandemic is beginning to become detrimental to a wide range of industries, prompting President Biden to launch an investigation into how it can be resolved.

President Biden is expected to sign an executive order today that will kick off a 100-day review of the semiconductor production pipeline, so that alternatives and strategies can be formulated to alleviate its effect on the American economy. This follows a collective call from companies such as Apple, Sony, AMD, and Qualcomm for the president take notice of the shortages and what it might mean for the economy in the short and long term.

"Semiconductors play a critical role in enabling the products and services that fuel our economy, contribute to American innovation, and enhance our national security," the groups said in a letter to the president last week. "Given the central role of semiconductors, strengthening the US position in semiconductor research, design, and manufacturing is a national priority."

The shortage is a major reason behind stock issues for electronics such as the Xbox Series X and PlayStation 5, as well as computer components such as GPUs, laptops, and more. It's become so widespread that even the automotive industry is now struggling, with electric vehicles requiring a large portion of the supply, too.

The executive order isn't limited to semiconductors either, with President Biden also launching investigations into the defense, public health, biological preparedness, information communications technology, transportation, and energy and food production sectors

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faithxvoid

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I know, with those corporate weasels involved, the 'solution' will likely involve HUGE subsidies for semiconductor research and production for those megacorps. It'll hold the retail price steady, but we'll be frontloading the real cost with our tax dollars. Kinda like how we get 'cheap' shipping from Amazon that we pay for through subsidies and sweetheart deals with the US Postal Service.

That said, I 100% agree with the sentiment!

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zerojuice

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@faithxvoid: Hey, if it weren't for Amazon, the US Postal Service would've been wiped out several years ago. Then we'd all have to rely on over-priced couriers.

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faithxvoid

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@zerojuice:They ship packages for Amazon at an operating loss. Tax payers bail them out of these holes, not Amazon. USPS has asked for more bailout money, more frequently from the moment they started cutting these deals.

I don't presume to know the solution, but worshipping to the idol of Amazon while stuffing it's coffers with subsidies is not a viable solution.

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Chrono99

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Maybe the prez likes a little cod in his off time or fortnite, Who knows? I know he likes Mario Kart. Hopefully he can help.

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Mezzanine58

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Alright. There seems to be an overwhelmingly misinformed view here that China makes semiconductors. China DOES NOT make all the semiconductors, in fact they have a fairly small number of semiconductor factories, even Taiwan has more. Over half of US semiconductors are made in the USA.

Keep that in mind before you make some stupid comment about China holding up supplies intentionally. Christ, it's like being on QAnon. There's nothing wrong with wanting China to fail, but at least support it with facts.

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EricDWright

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@mezzanine58 said:

Alright. There seems to be an overwhelmingly misinformed view here that China makes semiconductors. China DOES NOT make all the semiconductors, in fact they have a fairly small number of semiconductor factories, even Taiwan has more. Over half of US semiconductors are made in the USA.

Keep that in mind before you make some stupid comment about China holding up supplies intentionally. Christ, it's like being on QAnon. There's nothing wrong with wanting China to fail, but at least support it with facts.

True, But China DOES control 95% of the worlds rare earth metals used to make the components for such.

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deactivated-64ff549d2d157

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@EricDWright:

Semiconductors are mainly made of Silicon, Germanium and/or Gallium Arsenide. Compositions are rare, but possible.

Silicon is produced in China, Norway and Brazil, but it is mined in China, Russia, Norway and US.

Germanium is produced in China, Russia and Brazil, but it's mainly mined in Alaska and Tennessee.

Gallium is produced in China, Germany and South Korea and it's mined all over Asia.

In all 3 cases, China controls between 83 and 85% of the production chain.

@mezzanine58

That is the problem with the "trade wars".

This is going to sound like a defense of China, but it's not. I'm just pointing out what happens. To be clear, the Chinese Govt has been dishonest for decades, holding the value of their currency low, allowing intellectual property to be stolen and committing some incredible Human Rights violations.

But this is a case that "Everyone wants steak, but no one wants to bang the butcher".

One country starts blackballing tech, establishing taxation without criteria, the other country does the same with whatever they can.

There's something that must be understood. China has a 2.7 billion population with a 1.8 to 2.1 billion people workforce.

It is also on track to surpass the US GDP by 2029.

That economic growth comes with improvements in quality of life. The Chinese population is consuming goods in a rate that we haven't seen in history. Close to the US in the 60s and 70s, but with 8x the population.

China has the size and population support to be self sufficient. The rest of the world does not.

So either the rest of the world jumps into the trade war and takes a side, or they will have to find a way to work with them. Otherwise, they'll just keep controlling the supply chain and favoring their own market.

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Zelda37

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@dirtydyk: I think you may be just a wee bit high on those population numbers.

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deactivated-64ff549d2d157

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@zelda37: I agree.

Employed workforce is around 811m which is 4x the workforce in the US, but China counts every able bodied worker from 16 to 60 years old as part of the workforce. Hence the high estimate given by the Chinese Govt. (Not trustworthy, i know)

The point I was trying to make is China has cheap labor. Tons of it. So unless the world is ready to give up cheap labor and cheaper products, they're going to have to find a way to deal with China.

I am in Europe at the moment and they're in talks to build a major highway that connects China to Europe, all the way to Spain. That's an east to west trade route in which the US will be left out of if it doesn't get its ducks in a row.

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sladakrobot

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Yay,Biden says he will take care so i can get my XbsX much sooner.
*reads the article*
Oh,he never mentions consoles or gaming devices.

GS? What is that headline???

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hardwenzen

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Joe Biden says that on the 24th. The 25th arrives and he has completely forgtten what he said a day earlier.

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Atzenkiller

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But most if not all of those companies produce their products in China, same as everyone else. Why would a shortage in the US affect them in that case?

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Mezzanine58

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@Atzenkiller: China imports the semiconductors, around $300 billion's worth a year, mainly from the US and Japan. It's a major weakness of their economy and their main reliance on the outside, which is why they are quite concerned about the economic decoupling action being taken by the West and other states such as India.

The semiconductor shortage is everywhere.

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SystemOverload

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Why short PC and Mobile in the headline?

When will PC elitists get that GameSpot really care about PC gaming and should get the PC gaming news elsewhere.

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BlueFlameBat

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The title is borderline misleading. Since when does GameSpot resort to clickbait?

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hardwenzen

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@BlueFlameBat said:

The title is borderline misleading. Since when does GameSpot resort to clickbait?

Since 2016 or so. They're desperate because IGN is crushing them on clicks.

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tsunami2311

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Artificual made "shortage"

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Pyrosa

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Edited By Pyrosa

Fast-track incentives for a domestic fabrication plant... or better yet,THREE, owned by non-Chinese companies.

i.e., undo all the bulk exodus of semi mfg that TOOK PLACE DURING YOUR LAST WATCH.

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Pyrosa

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@Pyrosa: BTW, screw consoles and PCs... How are you going to get network traffic to your house next year when we have 11-month backlogs on chipsets for routers, switches, servers, optical gear, FTTH, and even cable?

BROADCOM shortages -- you know, the ones that Joe & Barry let sweep the table?

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dmblum1799

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I live in China. I have a PS5 and a PC with an RTX 3070 , which I bought last November. Now, I paid probably double or triple price in Chinese yuan from JD.com. I didn't really care. Life here is pretty cheap in Zhengzhou.

The reason the supply chains kept functioning in China is very, very simple. On Jan. 23, 2020 (over a year ago) Wuhan was locked down to stop the virus. And I don't mean American locked down. I mean there were police at your door and you couldn't leave. On Feb. 4 in Zhengzhou same thing. No public transport. No grocery stores, no pharmacies, no nothing. One small grocer. No meat. Everything closed. It made Fallout look like a vacation. It was you stay in your bedroom for 2 months.

That's just how it was, man. And the virus was smashed into the ground. You can't spread it if you can't leave your house. 2 months later everything was up and running again, the PS5s were being built and the NVIDIA cards being churned out.

Meanwhile, in the US, you had a rolling series of half-assed measures. And an idiotic president who said, lying, that Covid is no big deal. Now, China has 5,000 dead from Covid. The USA 500,000.

That's how we keep score, kids. Badda bing (Glenn Gary Glenn Ross).

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Wingedbeast

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Edited By Wingedbeast

@dmblum1799: And you just buy the official news from China just like that?

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alastor529

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@dmblum1799: just say what you mean, you think Communism is the best way

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hardwenzen

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@dmblum1799 said:

I live in China. I have a PS5 and a PC with an RTX 3070 , which I bought last November. Now, I paid probably double or triple price in Chinese yuan from JD.com. I didn't really care. Life here is pretty cheap in Zhengzhou.

The reason the supply chains kept functioning in China is very, very simple. On Jan. 23, 2020 (over a year ago) Wuhan was locked down to stop the virus. And I don't mean American locked down. I mean there were police at your door and you couldn't leave. On Feb. 4 in Zhengzhou same thing. No public transport. No grocery stores, no pharmacies, no nothing. One small grocer. No meat. Everything closed. It made Fallout look like a vacation. It was you stay in your bedroom for 2 months.

That's just how it was, man. And the virus was smashed into the ground. You can't spread it if you can't leave your house. 2 months later everything was up and running again, the PS5s were being built and the NVIDIA cards being churned out.

Meanwhile, in the US, you had a rolling series of half-assed measures. And an idiotic president who said, lying, that Covid is no big deal. Now, China has 5,000 dead from Covid. The USA 500,000.

That's how we keep score, kids. Badda bing (Glenn Gary Glenn Ross).

And who believes in those 5k deaths? 🤣

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pmanden

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@dmblum1799: Wow, sounds like you have experienced Fallout in real life. Fallout China VR. It could be the next Fallout title, haha. So what did you do in those two months? Played the hell out of your PC and console?

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CJ_Topspin

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@dmblum1799: So the choice is a PS5 + an RTX 3070 for triple price...or freedom?

...looks like I'm rocking my PS4 and my GTX 1070 for another 6 months...with a HUGE fucking grin.

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santinegrete

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@cj_topspin: what freedom? the freedom to spread contagion?

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Heqteur

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@dmblum1799: yeah, because we TOTALLY can trust China's number... It's not as if China's govt ever hid anything after all... oh, wait...

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Batman90

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@dmblum1799: Here in the USA we don’t live under a dictatorship that holds us hostage at our own homes. We get to decide if we go out and not go out. Those of us who are afraid can stay in their houses but those of us who are not afraid we continue to live our lives. There’s worse things then covid out here in the real world people can die just walking out door.

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X_CAPCOM_X

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@batman90 said:

@dmblum1799: Here in the USA we don’t live under a dictatorship that holds us hostage at our own homes. We get to decide if we go out and not go out. Those of us who are afraid can stay in their houses but those of us who are not afraid we continue to live our lives. There’s worse things then covid out here in the real world people can die just walking out door.

You probably should have just left the comment. The actual contrast is 5,000 dead vs 500,000 dead. Quite revealing for the current period.

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Wingedbeast

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@X_CAPCOM_X: the 5000 dead from china is a BS number.

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Batman90

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@X_CAPCOM_X: I don’t care what the death numbers are. I’m not scared of covid. I’m more scared of the vaccine then I am of covid.

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Heqteur

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@X_CAPCOM_X: You DO know that the death count is HIGHLY questionable due to the fact that several countries (including the US and Canada) who counted all death as covid related as soon as they could find covid case around and even if the dead had tested negative? For instance, in a retirement facility, as soon as there's an outbreak, everyone dying in there will be counted as a covid death, even if they died of a hearth attack, cancer or whatever and even tested negative for covid? You also do know that the Chinese govt was caught more than once manipulating their covid numbers, right?

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X_CAPCOM_X

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@heqteur: no it's not questionable in most countries. It's questionably low in the usa with practically no efforts to contain the spread, and whistleblower scientists like Rebekah Jones being threatened with arrest and intimidation for refusing to flasify data (of course falsifying the data to downplay the amount of cases/deaths).

Idk, maybe you learned that today?

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Batman90

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Edited By Batman90

@heqteur: my grandfather broke his hip and went into a nursing home and was tested 5 times and 3 of those times was a hospital testing and 2 rapid tests and tested negative on all 5. When he died 2 weeks later the nursing home told my mom and all my other family member he died of natural causes and a week later I told my mommy to get the death certificate and the nursing home Labeled the cause of death was covid. So my mom called the place and as soon as she said something about it the head person hanged up and good thing she recorded the conversation cause she again said he died of natural causes and handed up the phone when my mom asked why did they labeled it as covid related death. Now all the higher ups have lost their licenses and doing some time.

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Just1MoHr

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Edited By Just1MoHr

Ummmm lets see the strategy, they will make a minimum amount of product & sell them to the countries where there is least amount of tax. All in the meantime creating a shortage & lack of supply in the countries that they can charge more for their product & pay for their own COVID relief. Pretty smart if you ask me!

Bottom line is you cannot let CHYYYYYNNAAAA control your supplies you morons & the pres needs to do more than just look into it. He needs to encourage development & production here in the USA otherwise this can be an even bigger problem if a war or more detrimental pandemic hits (one in which a larger portion of the population is wiped out).

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Mezzanine58

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Edited By Mezzanine58

@just1mohr: Hold on... I don't think you understand. China doesn't make the semiconductors - the US does, and then sells them to China to put into the products.

So... the US controls semiconductor supplies along with Japan, and also South Korea to an extent.

In other words, you made a stupid comment.

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Crazy_sahara

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Edited By Crazy_sahara

@mezzanine58: actually the x86 instructions are owned by amd and intel(where as arm is owned by the United Kingdom patent and Sweden) so if you're a phone manufacturer you must obtain a arm license) where RISC v is open source low instruction set, where china can manufacture what ever semiconductor, however RISC v predates Arm low compute instructions, where as x86 is complex compute instructions, meaning greater power consumption, cost to transistors, and server costs.

Where arm is a blue print design china can hol-heartedly or anywhere to fabricate their own transistors (and they do, like wuawai, and with Googles open free android gnu licence, and Arms cheap license, the prices of phones have reduced in value considerably in the last decade, but that wouldn't have happened if under intel, Nvidia or AMD, )but if trade sanctions are imposed the American government can sanction use of parts(given how dumb it is, and why arm is such a beautiful system capable of x86 instructions) because let's look at the Asus Rog 3:

It's running on arm blue print, and uses Snapdragon(Qualcomm) that devices clocked to 3.1ghz, that's crazy.

So however you look at it, given Nvidia was going to buy arm, (thank gawd Microsoft and Google raises concerning reasons towards why? )because it reaches billions of people, but not x86 it's stil expensive even for people around the world to use, but we don't achnowledge that nor care, only when it effects us in other areas of life.

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Just1MoHr

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Edited By Just1MoHr

@mezzanine58: Yes, I know we produce them, but what I mean is that we need to produce the majority of it as in 80% or more. Do you really think we wouldn't have a shortage if we only produced 39% of them? So in other words you have made a stupid comment if you just stopped & thought a little. We need to be world leaders & dominate the market at all cost as industry is going to be more reliant on chip manufacturing & component manufacturing. We need high schools dedicated to science & technology at its core teachings, and if we don't do it you bet the others have already begun.

Because this industry is so pivotal it must be highly regulated & encouraged and should have lower tax brackets so it can thrive and constantly expand and innovate. And CHYYYNNNNAAA is used as a place holder...meaning them! And I am not talking just chips, I mean ALL computer technologies!

"The United States and its allies are global semiconductor supply chain leaders, while China lags. The U.S. semiconductor industry contributes 39 percent of the total value of the global semiconductor supply chain. U.S.-allied nations and regions—Japan, Europe (especially the Netherlands, the United Kingdom, and Germany), Taiwan, and South Korea—collectively contribute another 53 percent."

https://cset.georgetown.edu/research/the-semiconductor-supply-chain/

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