Chip shortage leaves US firms dangerously low on semiconductors, report says
Live MintUS manufacturers and other companies that use semiconductors are down to less than five days of inventory for key chips, the Commerce Department said Tuesday, citing the results of a new survey. “This means a disruption overseas, which might shut down a semiconductor plant for 2-3 weeks, has the potential to disable a manufacturing facility and furlough workers in the United States if that facility only has 3-5 days of inventory," the Commerce Department report said. “America invented these chips," Mr. Biden said at an event last week touting Intel Corp.’s plan to invest at least $20 billion in new chip-making capacity in Ohio. The Commerce Department said it would also take further steps to increase transparency of the supply chain, noting that the industry is so complex that producers at the beginning of the supply chain are far removed from the end users and thus don’t always have an ability to see how much demand there will be for certain products, while chip consumers “don’t always know where the chips they need originate."