Industry disrupted by global chip shortages

Chips / Photo: EPA / YONHAP

Shares of semiconductors have fallen globally due to a shortage of chips. The US Department of Commerce also warned about this.

A survey of more than 150 companies found that inventories fell from an average of 40 days in 2019 to just five days at the end of 2021.

Sales of electronic devices rose during the pandemic, leaving semiconductor manufacturers struggling to keep up with demand. The shortage has resulted in major disruptions in large industries.

Millions of products - cars, washing machines, smartphones and more - rely on these chips, also known as semiconductors, writes BBC.

"With the rapidly growing demand and full utilization of existing production facilities, it is clear that the only solution to the long-term solution to this crisis is the rebuilding of our domestic production facilities," said US Secretary of Commerce Gina Raimondo.

The research showed that the demand for semiconductors last year was as much as 17 percent higher than in 2019.

Democrats in the US House of Representatives, meanwhile, introduced a bill Tuesday aimed at boosting U.S. competition with China and spending $ 52 billion on semiconductor manufacturing and research after the Senate approved the funds in June.

President Joe Biden's administration is trying to persuade Congress to approve funding to increase chip production in the United States, as a lack of key components has exacerbated supply bottlenecks.

Last week Intel has announced that it will invest $ 20 billion in the US state of Ohio in the construction of the largest chip production complex in the world.

In November, Самсунг announced it had chosen a location near the US city of Taylor, Texas, for its new $ 17 billion computer chip factory.

The plant is expected to be commissioned in the second half of 2024, and is the largest US investment of the South Korean electronics giant.

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