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HomeBusinessGlobal Chip Shortage Hits Again, As US Technology Firms Stock Plunges

Global Chip Shortage Hits Again, As US Technology Firms Stock Plunges

The US Department of Commerce has warned that manufacturers’ semiconductor supplies have plummeted as a result of the worldwide chip shortage.

According to a study of over 150 businesses, supply have decreased from an average of 40 days in 2019 to only five days in late 2021.

During the epidemic, gadget sales skyrocketed, leaving semiconductor manufacturers unable to keep up with demand.

Major sectors have been severely impacted by the scarcity.

These chips, also known as semiconductors, are used in millions of items, including automobiles, washing machines, cellphones, and other electronic devices.

“With skyrocketing demand and full utilization of current production facilities, it’s evident that rebuilding our domestic manufacturing capacity is the only long-term answer to this dilemma.” Gina Raimondo, the US Secretary of Commerce, stated in a statement.

The study also discovered that semiconductor demand was up to 17% greater last year than it was in 2019.

Meanwhile, after the Senate authorized money in June, US House Democrats announced legislation on Tuesday aimed at strengthening US competitiveness with China and investing $52 billion (£38.5 billion) on semiconductor production and research.

President Joe Biden’s administration is lobbying Congress to authorize financing to assist improve chip production in the United States, where supply chain bottlenecks have been worsened by shortages of essential components.

Intel said last week that it will invest $20 billion in Ohio to develop what might be the world’s largest chip manufacturing plant.

Samsung said in November that it had picked a location in Taylor, Texas, for its planned $17 billion computer chip facility.

By the second part of 2024, the facility should be up and running. It is the South Korean electronics giant’s largest-ever investment in the United States.

Bob Carlson
Bob Carlson
Bob Carlson is a business journalist, with over a decade of experience in the trenches of reporting up-to-date business news for publications all over the world. With a wealth of knowledge at his back, Bob strives to bring the most important insights into the business world for TheOptic daily.
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