About that 'alarming' chip shortage — don't count on new fab plants to help quickly
The global semiconductor shortage made worse by the coronavirus pandemic and supply chain issues shows no signs of improving as industries worldwide have had to halt production while waiting for processors.
A report from the US Department of Commerce released this week revealed an “alarming” shortage of computer chips at a time when the median demand for them was as much as 17% higher in 2021 than 2019.
“This is a major supply and demand mismatch,” the report stated.
Commerce Secretary Gina Raimondo said the lack of chip inventory leaves auto manufacturers and other chip users with “no room for error.”