U.S. Dept. of Commerce Warns of Continuing Chip Shortages

According to a report released recently by the U.S. Commerce Department some manufacturers that rely on semiconductors are down to less than a five day supply of microchips. This is the latest indication that the extent of the computer chip shortage might be called “severe.”

The report was created by analyzing 150 responses to a Commerce Department request for information who rely on semiconductors to construct their products. The median supply held by manufactures was somewhere around 40 days-worth in 2019 to less than five days-worth last year.

The limited supply is an indication of several current and coming problems. Overseas it means that weather or Covid-19 outbreaks have slowed production. It could also mean that shutdowns with worker furloughs are coming to the U.S.

The report noted that inventories are even shorter in “key industries.”

The report noted that the supply chain for microchips remains fragile and that demand far outweighs supply.

Production shortages of microchips coming from Asia have meant higher prices in items like smart phones, cars, and even washing machines. This is also during a time when people have become even more reliant on devices that employ these computer chips.