Global chip shortage: US says firms' stocks have plunged

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The US Department of Commerce warned that manufacturers have seen their stocks of chips plunge.

A survey of more than 150 firms found that supplies had fallen from an average of 40 days worth in the year 2019) to just five days in late 2021.

Semiconductor makers were struggling to keep up with demand during the Pandemic.

Major industries have been disrupted by the shortage.

Millions of products rely on these chips.

With sky-rocketing demand and full utilization of existing manufacturing facilities, it is clear that the only solution to this crisis is to rebuild our domestic manufacturing capabilities.

The demand for semiconductors was higher last year than it was in 2019.

The Senate approved funding in June for a bill that would increase US competitiveness with China.

The administration of President Joe Biden wants Congress to approve funding to boost chip production in the US, as shortages of the key components have worsened supply chain shortages.

Last week, Intel said it would invest $20 billion to build a chip-making complex in Ohio.

In November of last year, it was announced that the new $17 billion computer chip plant would be located in Taylor, Texas.

The plant is expected to be up and running by the second half of the century. It is the biggest investment of its kind in the US.