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Has been updated:Washington (AP) — US supply of computer chips has fallen to surprisingly low levels, raising the prospect of factory closures, the Commerce Department reported Tuesday.
According to a divisional survey of 150 companies, inventories of companies using semiconductors are less than 5 days, a significant decrease from 40 days in 2019. There is a particular shortage of chips used in the manufacture of automobiles and medical devices.
Demand for chips has increased by 17% from last year to 2019, according to the agency.
Citing the results, the Biden administration called on Congress to pass a deadlocked law that would provide $ 52 billion for domestic semiconductor production.
“The semiconductor supply chain is still fragile and it is imperative that Congress hand over the chips as soon as possible,” Secretary of Commerce Gina Raimondo said in a statement. “It is clear that the only long-term solution to this crisis, with soaring demand and maximizing the use of existing manufacturing facilities, is to rebuild domestic manufacturing capacity.”
The chip shortage disrupted car production, pushed up car prices and contributed significantly to a 7% year-on-year rise in consumer prices last month. This is the highest inflation in 40 years. Still, it will take years for semiconductor factories to go live.
US warns that chip shortage may close factories | WGN Radio 720
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