Home » US warns that chip scarcity may shut down factories

US warns that chip scarcity may shut down factories

FILE – U.S. Secretary of Commerce Gina Raimondo speaks in the course of the announcement on Friday Jan. 21, 2022 in Newark, Ohio, that Intel will make investments $20 billion to construct two laptop chip factories on a 1,000-acre web site in Licking County, Ohio, simply east of Columbus. The U.S. provide of laptop chips has fallen to alarmingly low ranges, elevating the prospect of manufacturing facility shutdowns, the Commerce Division reported Tuesday, Jan. 25.Paul Vernon/AP

WASHINGTON (AP) — The U.S. provide of laptop chips has fallen to alarmingly low ranges, elevating the prospect of manufacturing facility shutdowns, the Commerce Division reported Tuesday.

Corporations that use semiconductors are right down to lower than 5 days of stock — a pointy drop from 40 days in 2019, in keeping with a division survey of 150 corporations. The chips used within the manufacturing of cars and medical units are particularly scarce.

Demand for chips, the division mentioned, was up 17% final 12 months from 2019.

Citing the outcomes, the Biden administration known as on Congress to move stalled laws that would supply $52 billion for home semiconductor manufacturing.


“The semiconductor provide chain stays fragile, and it’s important that Congress move chips funding as quickly as potential,” Commerce Secretary Gina Raimondo mentioned in a press release. “With sky-rocketing demand and full utilization of current manufacturing services, it’s clear the one answer to resolve this disaster within the long-term is to rebuild our home manufacturing capabilities.’’

Chip shortages have disrupted auto manufacturing and pushed up automotive costs, contributing considerably to a 7% year-over-year enhance in client costs final month — the most popular inflation in 4 a long time. Nonetheless, it will take years for semiconductor factories to start operation.