Why is a supply floor important?

A supply floor is crucial for ensuring supply chain resiliency, particularly in critical industries like automotive and defense. For instance, investments in semiconductor supply chains highlight the need to balance advanced technology development with maintaining production of current-generation components. This dual approach helps address pressures in supply chains, securing critical infrastructure and national security interests. Todd Fisher points out that setting a supply floor guarantees sustained production capabilities for essential industries, meeting rising demand, particularly in the auto sector driven by EVs and autonomous vehicles 1 .