Economics

Biden Aide Deese Says Semiconductor Shortage Cost 1% of U.S. GDP

  • Biden administration pushes $52 billion support plan for chips
  • Senior officials set to give legislators classified briefing
Chip Makers Scramble to Keep Up With Soaring Demand
Lock
This article is for subscribers only.

President Joe Biden’s top economic adviser said that a shortage of semiconductors last year probably shaved a full percentage point off U.S. economic output in 2021, and that administration officials will brief Congress on the crisis Wednesday.

“We are 100% vulnerable to foreign supply chains on those advanced semiconductors,” the director of Biden’s National Economic Council, Brian Deese, told reporters at a breakfast hosted by the Christian Science Monitor on Wednesday. “The best estimates are that the lack of available semiconductors probably took a full percentage point off of GDP in 2021.”