Commerce Secretary Gina Raimondo reported Tuesday that the U.S. is not out of the woods with the chip shortage, even as she reported some positive developments.
“The semiconductor supply chain remains fragile, and it is essential that Congress pass chips funding as soon as possible,’ she said in a statement.
She urged congressional passage of $52 billion to revitalize the domestic chip industry, which was contained in a measure passed last summer by the Senate. On Tuesday, the American COMPETES Act was introduced in the House, which could lead to a conference between the House and Senate on a chip fab funding measure to be signed by President Biden. U.S. Sen. Mark Warner, D-Va., called the House introduction an "important step."
The Commerce Department solicited comments from major semiconductor producers and companies like auto that consume chips and found that median inventory fell from 40 days in 2019 to less than 5 days in 2021. The primary bottleneck appears to be wafer production.
Raimondo said she was encouraged by recent announcements on semiconductors, including Intel’s plans to build two fabs in Ohio for $20 billion and a partnership between Ford and Global Foundries to innovate on future chips, while GM announced a partnership with seven different chipmakers.
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