The Biden administration has warned that there could be extreme risks to the United States’ economy due to the semiconductor shortage.
The chip shortage has significantly affected American manufacturing since the start of the pandemic. At the start of this year it was reported that some companies were down to less than five days of inventory — a sharp drop from 40 days in 2019.
The chips used in the production of automobiles and medical devices are especially scarce.
Now, White House National Economic Council Director Brian Deese has suggested that "the lack of available semiconductors probably took a full percentage point off of GDP in 2021."
There is also an “urgent need to invest in made-in-America semiconductors as well as research and development that will protect our economic and national security."
Companies such as Intel and Samsung have said they would start building chip plants in the United States.
Intel will invest $20 billion in a new computer chip facility in Ohio, while Samsung will launch a $17 billion factory outside Austin, Texas. However, such plans will take years before they are completed.
"A significant interruption to our supply of semiconductors could cause historic damage to the US economy – damage far greater than the impact of chips shortages on the American auto industry right now – and would undercut our technological competitiveness and military advantages over adversaries globally," the White House said, as reported by Reuters.
Unfortunately, analysis from the US Commerce Department stated that there is “no quick fix in the face of emergency” and even investment in US chip production "will not be sufficient to mitigate the risks associated with the current U.S. supply chain vulnerabilities."
Everyday consumers are struggling to find games consoles like the Xbox Series X and the PlayStation 5 amid the shortage, with many having to constantly check live updates in order to get a chance to buy what would otherwise be everyday goods.
originally published www-independent-co-uk.cdn
