Friday, November 22, 2024

Semiconductor shortage could shut down US factories

Washington /

the Supplying computer chips in the United States The Department of Commerce (DOC) reported that it had fallen to alarmingly low levels, leading to factory closures.

the Companies using semiconductors have inventory less than five days, A sharp drop from 40 days in 2019, according to a management survey of 150 companies. Chips used in the production of cars and medical devices are particularly rare.

the Demand for microprocessors increased by 17 percent The department added last year compared to the 2019 level.

Citing the results, President Joe Biden’s administration asked Congress to pass a A bill that would save $52 billion for domestic chip production.

“the The semiconductor supply chain is still fragile Commerce Secretary Gina Raimondo said in a statement it was imperative that Congress approve funding for the chips as quickly as possible. “With the increasing demand and full use of existing manufacturing facilities, it is clear that the only long-term solution to this crisis is to rebuild our local manufacturing capabilities.”

the The lack of chips has disrupted car production And it raised car prices, which contributed significantly to a 7 percent year-on-year increase in consumer prices last month, the highest inflation in four decades. However, semiconductor factories take years to get up and running.

AMP

See also  Montreal, the third most expensive city in Canada
Latest news
Related news