Gina Raimando, US Commerce Secretary said, “The Global shortage of critical semiconductors is likely to last at least through next year and perhaps longer.” Last year due to Covid-19 many key asian suppliers shut down and the supplies were affected.

Raimondo also added, “I do not unfortunately see the chip shortage abating in any meaningful way anytime in the next year.” She said she discussed the chip shortage with leaders and CEOs in the chip manufacturing industry and they said in 2023 and possibly in early 2024 we’ll see some relief.

She has asked the Congress to act on the final form of legislation which is The US Senate and the House of Representatives each have approved $52 billion bills- the CHIPS Act and the America COMPETES Act- that would invest in domestic chip research and manufacturing.

According to Raimando, if Congress doesn’t act quickly then, the key producers like Samsung, Intel and Micron will start to build in another country and that will be hugely problematic. The computer chips are used in a wide array of products from smartphones to vacuum cleaners and medical devices. Every other country has subsidies on the table now.