This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Chip Shortage Leaves U.S. Companies Dangerously Low on Semiconductors, Report Says
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Business > Chip Shortage Leaves U.S. Companies Dangerously Low on Semiconductors, Report Says
Business

Chip Shortage Leaves U.S. Companies Dangerously Low on Semiconductors, Report Says

Editorial Board Published January 26, 2022
Share
Chip Shortage Leaves U.S. Companies Dangerously Low on Semiconductors, Report Says
SHARE

WASHINGTON—U.S. manufacturers and other companies that use semiconductors are down to less than five days of inventory for key chips, the Commerce Department said Tuesday, citing the results of a new survey.

In 2019, companies typically maintained 40 days of inventory for key chips, according to the Commerce Department report. Now for the same chips—defined as 160 products that companies identified as being the most challenging to acquire—companies are operating with fewer than five days of inventory, the report said.

Commerce Secretary Gina Raimondo said the survey results show the urgency for Congress to approve the U.S. Innovation and Competition Act, which includes $52 billion to boost domestic chip production.

“We aren’t even close to being out of the woods as it relates to the supply problems with semiconductors,” Ms. Raimondo told reporters Tuesday. “The semiconductor supply chain is very fragile, and it is going to remain that way until we can increase chip production.”

Since September, the Commerce Department has sought detailed industry data from the major companies in the semiconductor supply chain. Its report was based on a survey of companies, including material and equipment providers; semiconductor manufacturers; and automotive, industrial and healthcare companies that need chips for their products.

A global chip shortage is affecting how quickly we can drive a car off the lot or buy a new laptop. WSJ visits a fabrication plant in Singapore to see the complex process of chip making and how one manufacturer is trying to overcome the shortage. Photo: Edwin Cheng for The Wall Street Journal (Video from 6/3/21)

The thin inventories are a source of particular concern because of how a single shutdown can then ripple through the supply chain. With these wafer-thin inventories, a closure of an overseas factory earlier in a company’s supply chain, for more than a few days, can cause it to exhaust its inventories.

“This means a disruption overseas, which might shut down a semiconductor plant for 2-3 weeks, has the potential to disable a manufacturing facility and furlough workers in the United States if that facility only has 3-5 days of inventory,” the Commerce Department report said.

The Commerce Department released its findings as part of a push to revive the U.S. Innovation and Competition Act.

The Senate passed its version of the $250 billion measure to boost high-tech research and manufacturing on a bipartisan vote last year, including $52 billion for expanding domestic chip production.

Similar legislation was stalled for months in the House, but late Tuesday backers released details of their package, titled the America Competes Act. The bill is roughly comparable to the Senate package, with some differences.

The House bill focuses strongly on supply-chain issues, authorizing $45 billion for grants and loans to support supply-chain resilience and manufacturing of critical goods. It also takes a number of steps to combat climate change that aren’t included in the Senate version, setting up potential conflict with congressional Republicans.

President Biden has often highlighted the shortage of semiconductors in efforts to control supply-chain problems and inflation. While the focus has largely been on their use in automobiles and resulting production slowdowns, the president has noted their use in a variety of products, from refrigerators to hospital equipment.

“America invented these chips,” Mr. Biden said at an event last week touting Intel Corp.’s plan to invest at least $20 billion in new chip-making capacity in Ohio. Over the years, more chip production moved overseas, mainly to lower-cost countries in Asia.

The White House, citing industry data, says chip companies have announced nearly $80 billion in new investments in the U.S. that should unfold through 2025. “We are going to stamp everything we can ‘Made in America,’ especially these computer chips,” Mr. Biden said.

John Neuffer, president of the Semiconductor Industry Association, said that the U.S. is in danger of falling behind other countries that are working to boost their domestic chip production.

“The U.S. simply must level the global playing field to ensure more of the chips our country needs are researched, designed, and manufactured on U.S. soil,” he said.

The Commerce Department’s summary of its information highlighted particular chips—certain nodes of microcontrollers, analog chips and optoelectronic chips—that are suffering from a particularly acute supply shortage.

In a briefing with reporters, officials said they had not uncovered evidence that the shortages were resulting from companies hoarding chips. Some suppliers had speculated last year that hoarding could be a partial explanation for the shortages.

The data showed that these chips typically had a lead time—the time from start to delivery of the product—of between 84 and 182 days. By late 2021, that had doubled for some key products, and the lead time had stretched to 103-365 days.

The Commerce Department said it would also take further steps to increase transparency of the supply chain, noting that the industry is so complex that producers at the beginning of the supply chain are far removed from the end users and thus don’t always have an ability to see how much demand there will be for certain products, while chip consumers “don’t always know where the chips they need originate.”

—John D. McKinnon contributed to this article.

Write to Josh Zumbrun at [email protected] and Alex Leary at [email protected]

The Chip Shortage

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:Business NewsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Indigenous Group Finds Possible Unmarked Graves at Ex-School Site Indigenous Group Finds Possible Unmarked Graves at Ex-School Site
Next Article Microsoft Saved by the PC Microsoft Saved by the PC

Editor's Pick

Brooke Hogan Written Out of Hulk’s Will (At Her Personal Request)

Brooke Hogan Written Out of Hulk’s Will (At Her Personal Request)

Studying Time: 3 minutes Brooke Hogan isn’t in her dad’s will, a brand new report reveals. Regardless of years of…

By Editorial Board 4 Min Read
6 Greatest Underwear To Stop Chafing For Males in 2025 | Fashion
6 Greatest Underwear To Stop Chafing For Males in 2025 | Fashion

We independently consider all really helpful services. Any services or products put…

15 Min Read
9 Finest Males’s Shorts Manufacturers – Versatile Types For 2025 | Fashion
9 Finest Males’s Shorts Manufacturers – Versatile Types For 2025 | Fashion

We independently consider all advisable services. Any services or products put ahead…

13 Min Read

Oponion

Subsequent man up for 49ers? It’s halfback Patrick Taylor Jr. vs. Dolphins

Subsequent man up for 49ers? It’s halfback Patrick Taylor Jr. vs. Dolphins

SANTA CLARA — Patrick Taylor Jr. concedes there are occasions…

December 20, 2024

Hamilton’s first weeks at Ferrari: ‘The place I am alleged to be’

Laurence EdmondsonFeb 24, 2025, 06:34 AM…

February 24, 2025

Bomb risk forces evacuation of Santa Clara County election workplace

SAN JOSE — A bomb risk…

November 9, 2024

Meta’s Mark Zuckerberg Says He Is Accountable as Company Preps for Mass Layoffs

WSJ News ExclusiveTechLayoffs are to begin…

November 8, 2022

Hugh Jackman Confirms Sutton Foster Relationship One 12 months After Deborra-Lee Furness Break up

Again in November, we reported on…

January 8, 2025

You Might Also Like

Thales Reinforces its Management in eSIM and IoT Connectivity with a ‘Ready to Use’ Licensed Resolution
Business

Thales Reinforces its Management in eSIM and IoT Connectivity with a ‘Ready to Use’ Licensed Resolution

At a time when billions of linked objects are reshaping industries, Thales has achieved a vital safety certification for its…

4 Min Read
Soracom IoT Platform Achieves SOC 2 Kind 2 Compliance for Safety, Availability, and Confidentiality
Business

Soracom IoT Platform Achieves SOC 2 Kind 2 Compliance for Safety, Availability, and Confidentiality

Soracom, Inc., right now introduced that it has efficiently achieved System and Group Controls (SOC) 2 Kind 2 compliance, reinforcing…

2 Min Read
Mobile IoT Module Shipments Grew 23% in Q1 2025 as US–China tensions affect vendor panorama
Business

Mobile IoT Module Shipments Grew 23% in Q1 2025 as US–China tensions affect vendor panorama

In brief Shipments of mobile IoT modules and chipsets grew 23% year-over-year in Q1 2025, based on IoT Analytics’ International…

20 Min Read
Prime 7 Visitor Posting Marketplaces to Purchase Visitor Posts That Drive Search engine optimization Outcomes
Business

Prime 7 Visitor Posting Marketplaces to Purchase Visitor Posts That Drive Search engine optimization Outcomes

Utilizing a visitor posting market helps you overlook all that like a nasty nightmare. However how do you discover probably…

14 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?