Commerce Dept. Survey Uncovers 'Alarming' Chip Shortages

[Eugene]

Source: New York Times

Commerce Dept. Survey Uncovers ‘Alarming’ Chip Shortages

Increased demand for the semiconductors that power cars, electronics and electrical grids have stoked inflation and could cause more factory shutdowns in the United States.

By Ana Swanson and Catie Edmondson
Jan. 25, 2022
Updated 2:56 p.m. ET

WASHINGTON — The United States is facing an “alarming” shortage of semiconductors, a government survey of more than 150 companies that make and buy chips found; the situation is threatening American factory production and helping to fuel inflation, Gina M. Raimondo, the commerce secretary, said in an interview on Monday.

She said the findings showed a critical need to support domestic manufacturing and called on Congress to pass legislation aimed at bolstering U.S. competitiveness with China by enabling more American production.

“It’s alarming, really, the situation we’re in as a country, and how urgently we need to move to increase our domestic capacity,” Ms. Raimondo said.

The findings show demand for the chips that power cars, electronics, medical devices and other products far outstripping supply, even as global chip makers approach their maximum production capacity.

While demand for semiconductors increased 17 percent from 2019 to 2021, there was no commensurate increase in supply. ...

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Read more: https://www.nytimes.com/2022/01/25/business/economy/chips-semiconductors-shortage.html?unlocked_article_code=AAAAAAAAAAAAAAAACEIPuonUktbfqYhkSVUZBibfQMMmqBCdnr_Cy7s6gXrvayOVSC5Ziv8YBomL_EHBeKF_YMEomi-bQ8VdObAiAvxuy-sVd2pcdz6VmLrW0pIUP3dy7oupQmI925-KA-Fjq2KwPmL8dOxxyPji4RjadTG9XaPA0HRyIwxh9pVhdl_7ymVIkvmeapN93Nl_3fciApFoF3xXNGTR4a6eW1gpM86Gbxrc9gA1R-pePDrSltSb4LkFGx5AXROEFDgspDZht64PfY8fL639LBU_ecHhgLR3CWZgLouhBJxZVJFmsz7q9mGjk5V8D7IXNA99&smid=url-share

Original NYT link: https://www.nytimes.com/2022/01/25/business/economy/chips-semiconductors-shortage.html

[JohnSJ]

1. Exactly. Start producing the chips here

[Eugene]

2. Initiatives are underway, but it takes 2 years to build a fab plant.

The most advanced relief efforts have another year before going online.

[JohnSJ]

3. Understood, but we have to start somewhere

[mahatmakanejeeves]

4. Manufacturers have less than five days' supply of some computer chips, Commerce Department says

Tech Policy

Manufacturers have less than five days’ supply of some computer chips, Commerce Department says

Wafer-thin inventories leave factories vulnerable to shutdowns if their chip deliveries are interrupted by weather or covid-19

By Jeanne Whalen
Yesterday at 11:00 a.m. EST|Updated yesterday at 7:23 p.m. EST

Manufacturers and other buyers of computer chips had less than five days’ supply of some chips on hand late last year, leaving them vulnerable to any disruptions in deliveries, the Commerce Department reported Tuesday as it pushed Congress to endorse federal aid for chip makers.

{snip}

Tony Romm contributed to this report.

By Jeanne Whalen
Jeanne Whalen is a reporter covering business around the world. She previously reported for the Wall Street Journal from New York, London and Moscow. Twitter https://twitter.com/JeanneWhalen