Commerce Dept. Survey Uncovers 'Alarming' Chip Shortages [View all]

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