TX Gov. Greg Abbott Wants His State To Be Semiconductor Hub As Supply Chain Issues Rage On

Gov. Greg Abbott, a Republican from Texas, wants to see his state become a hub for semiconductor manufacturing as more critical industries are negatively impacted by the global supply chain crisis.

Abbott conducted an interview with Fox Business on Sunday where he argued that the U.S. miscalculated when it decided to outsource the manufacturing of certain key materials.

“The country made a mistake over the past one or two decades to farm out manufacturing of all these essential supplies,” Abbott went on to state, “whether it be now semiconductors or could be health care supplies that we needed during the time of COVID, whatever the case may be, we need to not depend upon China or other countries for our essential needs, for things like semiconductors.”

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“That is exactly why Texas actually is leading the way, becoming the home for semiconductors that go into everything that people use,” he added. “It’s not just your iPhone or your laptop or whatever the case may be. It’s also in all of these vehicles where you have manufacturing going on.”

via Daily Wire:

Indeed, supply chain bottlenecks are causing a global semiconductor shortage — resulting in headaches among automotive executives. Last month, Ford struck a strategic agreement with GlobalFoundries to develop computer chips, while General Motors is likewise pursuing stronger relationships with manufacturers.

Meanwhile, Samsung announced that it would build a $17 billion semiconductor factory in Taylor, Texas — marking the largest foreign direct investment in the state’s history.

“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” said the Texas governor in a statement. “Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry.”

“As one of the largest foreign investment economic development projects in United States history, to say Samsung’s commitment to this project is monumental would be a huge understatement,” Taylor Economic Development Corporation President and CEO Mark Thomas went on to add.

As Abbott mentioned, supply chain backlogs are threatening the supply of several dozen pharmaceutical products — including heart medications, antibiotics, and cancer drugs. The United States Food and Drug Administration has “asked manufacturers to evaluate their entire supply chain, including active pharmaceutical ingredients, finished dose forms, and any components that may be impacted in any area of the supply chain due to the COVID-19 outbreak.”

The Council on Foreign Relations has come out and revealed that many American companies have become more and more reliant on pharmaceutical imports from both China and India. Data says that as of March 2020, almost 80 percent of active pharmaceutical ingredients and 90 percent of generic medications come from the two nations.

The supply chain crisis we’re facing is also having a huge impact on the defense industry.

“When I think about the challenges that we all might face going into next year, the labor shortages that we’re seeing are suddenly one that’s top of mind,” Northrop Grumman CEO Kathy Warden stated during a conversation on CNBC . “We have seen an increase in demand for the kinds of skills that we need to support our work at the same time that we’ve seen labor participation rates go down.”


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