Biden has urgently earmarked $50m to set up production of printed circuit boards for military electronics in the US and Canada

US President Joy Biden used the Defence Production Act to allocate funds for the establishment of printed circuit board production in the country. It is believed that the lack of one was a threat to national security.

Here's What We Know

The Defence Production Act allows the president to address an important issue quickly, bypassing a lot of bureaucracy. $50 million has been earmarked for the establishment of printed circuit board production in the US and Canada.

The goal is expected to be achieved within a couple of years. In addition, some of the funding will be spent on setting up a chip testing and packaging facility.

The US wants to expand domestic production of printed circuit boards for military electronics. Washington has long had problems with this. In 2015, for example, it was revealed that UK-based Exception PCB, which produced printed circuit boards for the fifth-generation F-35 Lightning II fighter jets, had been bought by China's Shenzhen Fastprint.

However, the nature of the concerns is different. Whereas US authorities were previously worried that components from China could collect and transmit information, the US could now completely lose access to semiconductor products in the event of war in Taiwan.

Source: scmp