U.S. Commerce Department: chip shortage to continue in 2023

U.S. Commerce Department: chip shortage to continue in 2023

Washington, Feb. 1. 2022

A report from the U.S. Department of Commerce says the global chip shortage will continue into the second half of 2022 and likely beyond. The report includes 150 responses from most major chipmakers and companies that rely on semiconductors.

In 2021, demand for chips increased 17% compared to 2019, the report said.

Companies buying semiconductors had less than five days of inventory, down from 40 days two years ago. Broadband companies, automakers and medical device makers have been hit particularly hard by the shortage.

U.S. – Commerce Secretary Gina Raimondo said U.S. authorities are investigating allegations of possible price fixing on chips for cars and medical devices.

For now, companies are best positioned to meet the challenges by optimizing their designs, boosting production and limiting the impact on their supply chains, officials said.

The White House continued to urge Congress to pass the stalled CHIPs bill, which would provide up to $52 billion for domestic semiconductor production.