Chips still in short supply for at least 6 months

The global chip shortage that started last year has seriously affected various industries in the EU. The auto manufacturing industry has been particularly affected. Delivery delays are common, highlighting the EU's dependence on overseas chip suppliers. It is reported that some large companies are increasing their chip production layout in the EU.

Recently, an analysis of data from major companies in the global semiconductor supply chain released by the U.S. Department of Commerce showed that the global semiconductor supply chain is still fragile, and the chip supply shortage will continue for at least 6 months.

The information also shows that the median user inventory of key chips has dropped from 40 days in 2019 to less than 5 days in 2021. The U.S. Commerce Department said this means that if factors such as the new crown epidemic and natural disasters shut down foreign semiconductor factories for even a few weeks, it may further lead to the shutdown of U.S. manufacturing companies and the temporary layoff of workers.

According to CCTV News, U.S. Commerce Secretary Raimondo issued a statement saying that the semiconductor supply chain is still fragile, and the U.S. Congress must approve President Biden’s proposal to invest $52 billion to increase domestic chip R&D and manufacturing as soon as possible. She claimed that given the surge in demand for semiconductor products and the full utilization of existing production facilities, the only solution to the semiconductor supply crisis in the long run is to rebuild U.S. domestic manufacturing capacity.