WASHINGTON: The supply of US computer chips has fallen to a very low level, increasing the prospect of factory shutdown, the trade department reported Tuesday.
Companies that use semiconductors fell to less than five days of inventory _ sharp decline from 40 days in 2019, according to department surveys to 150 companies.
The chips used in the production of cars and medical devices are very rare.
Chip demand, the department said, up 17% last year from 2019.
Citing results, Biden administration asked Congress to pass a traffic jam that would provide $ 52 billion for domestic semiconductor production.
“The supply chain of semiconductors remains fragile, and it is important that Congress passes chips funding as soon as possible, ” Trade Secretary Gina Raimondo said in a statement.” With the demand for Sky-Rocketing and the full use of existing manufacturing facilities, it is clear that only the solution to resolve this crisis in the hottest long-term inflation in four decades.
However, it will take years for the semiconductor factory to start operations.