The shortage has occurred due to the Covid-19 pandemic which forced shutdowns of manufacturing units
PRAVASISAMWAD.COM
The US Commerce Secretary, Gina Raimondo, recently warned that the global shortage of critical semiconductors would last for quite some time. The shortage has occurred due to the Covid-19 pandemic which forced shutdowns of manufacturing units. The shortage was exacerbated after American consumers — with cash from government aid – bought cars and electronics, which depend on the chips.
“I do not unfortunately see the chip shortage abating in any meaningful way anytime in the next year,” Raimondo told reporters following her recent trip to Asia. She also said that she had spoken to a dozen CEOs, including leaders of chipmakers, during her time in South Korea to discuss the shortage “and they all agreed that … deep into 2023, possibly early ‘24 before we see any real relief”.
The US Senate and the House of Representatives each have approved $52 billion bills — the CHIPS Act and the America COMPETES Act — that would invest in domestic chip research and manufacturing…
Almost every country had subsidies for chip manufacturers but not the US. She said if Congress did not act very quickly, “key producers like Samsung, Intel and Micron” are going to build in another country and “that would be hugely problematic”.
The US Senate and the House of Representatives each have approved $52 billion bills — the CHIPS Act and the America COMPETES Act — that would invest in domestic chip research and manufacturing, but so far have failed to agree on the final form of the legislation.
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