Xorte logo

News Markets Groups

USA | Europe | Asia | World| Stocks | Commodities



Add a new RSS channel

 
 


Keywords

2022-01-25 22:06:12| Engadget

Don't expect the worldwide chip shortage to end any time soon. Bloomberg and The Washington Post note the US Commerce Department has published a semiconductor supply chain report estimating that the global shortage will last until at least the second half of 2022. "We aren't even close to being out of the woods" with supply problems, Department Secretary Gina Raimondo said.Many companies are particularly sensitive to problems, too. The median chip inventory for a client company plunged from 40 days in 2019 to under five days in 2021. Even a relatively short (weeks-long) disruption overseas could shut down an American factory, the Department said.The shortage is particularly damaging to broadband companies, car makers and medical device producers, according to the report. Despite early claims, there wasn't evidence hoarding contributed to the shortfalls. Demand was higher, too, with median interest about 17 percent higher in 2021 than it was two years earlier. The Commerce Department's study was comprehensive, obtaining supply chain data from almost all major semiconductor firms and companies across a range of industries.Officials concluded the government couldn't directly end the shortage. Private companies were "best positioned" to overcome challenges by increasing production, optimizing their designs and limiting the impact on their supply chains. However, Raimondo used this as an opportunity to plug President Biden's proposed $52 billion subsidy through the US Innovation and Competition Act (USICA). The investment could help "rebuild American manufacturing" and boost domestic supply chains for "years ahead," she said.Factories resulting from USICA money wouldn't be ready for years, however, and the bill itself has been delayed. While it passed a crucial Senate vote, the House bill is only expected to surface by this week at the earliest. It could take longer to both clear the House and evolve into a final form Biden can sign into law. For now, the tech industry largely has to solve this dilemma on its own.


Category: Marketing and Advertising

 

Latest from this category

04.07Otriums AI models give unsold fashion a second chance
03.07Top 10 Favorite Creator-Led Brands [Infographic]
03.07AI Update, July 3, 2025: AI News and Views From the Past Week
03.07The Power of Emotional Advertising in B2B Brand-Building: Feelings vs. Function
03.07In Relooted, gamers plan the perfect heist to reclaim Africas stolen artifacts
02.07The State of Hybrid Work
02.07Thought Leadership for Lead Generation: A Smart Key for Unlocking Transformational Growth
01.07Eight Less Traditional Ways People Are Using AI at Work
Marketing and Advertising »

All news

04.07Sebi bars Jane Street from accessing its securities market: Reports
04.07RBI holds steady on gold purchases amid price forecast and geopolitical tensions
04.07India growth prospects robust, justify high valuation: BlackRock Research
04.07Realty rally may have peaked, go for stock-specific bets: Analysts
04.07JSW Group secures Rs 9,300-crore financing for Akzo Nobel acquisition
04.07Home Office unaware if foreign workers leave after visas end, MPs say
04.07Viral band finds itself at the centre of AI claims and hoaxes
04.07'I'm being paid to fix issues caused by AI'
More »
Privacy policy . Copyright . Contact form .