The U.S. government could begin loaning billions of dollars to companies in a bid to get them to return supply chain manufacturing to the United States.
The U.S. International Development Finance Corp. is talking to companies about bringing manufacturing back to the States, or “reshoring.” Clients may include a projected $12 billion semiconductor plant as well as makers of personal protective equipment, generic drugs and pharmaceutical ingredients.
Letters of understanding could be signed within the next month, DFC Chief Executive Adam Boehler told Reuters this week.
The Trump administration has been looking for ways to bring critical manufacturing back to the States for years, but especially since the outbreak of the coronavirus pandemic which exposed vulnerabilities in U.S.’ manufacturing, especially as it relates to pharmaceuticals and PPE.
“The areas that have come on hot right away are on the PPE side and within the pharmaceutical value chains,” Boehler said.
The DFC and the Department of Defense are jointly administering a $100 million fun to aid in supply chain reshoring. That can be leveraged into “tens of billions of dollars” in loans by using the full faith and credit of the U.S. government to back them Boehler said.
Photo by U.S. Embassy – Guatemala via Wikimedia Commons