Here’s how bad the chip shortage is, according to the White House

'Nearly every major semiconductor producer' weighed in

1/25/2022 10:10:00 PM

Here’s how bad the chip shortage is, according to the White House

'Nearly every major semiconductor producer' weighed in

wherethe issues lie:The Department of Commerce says it’s clearly demand, not just supply constraints, that are bogging things down, with 17 percent higher demand for chips in 2021 vs. 2019.Now, the industry has just five days’ worth of inventory on shelves, down from 40 days’ worth in 2019. “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 report argues.

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Ban bitcoin So another bill that is stuck in the legislative process, fabulous. O m g it is really bad😪 & thats just chips. Rest of electronics ecosystem is just as bad. So tell ur whole staff & competitors to check the 🌏supply ⛓️ before they write these silly stories about all the new 📱💻 XR👓coming in 2022 if the supply ⛓️ can't back it up

RodAlzmann yeah. RodAlzmann Can't buy the dip if you don't have any chips let me make the matter easy for you: Baby Boomers are too old to make ‘em, Gen X wants too much money to make ‘em, and Millennials expect robots to make ‘em. chip makers can’t buy robots to make ‘em because the robot makers need the chips too.

It’s still not clear what the cause of this chip shortage is. Higher demand and wafer production are mentioned but they do not explain why the industry did not scale to meet demand. Who cares about the white house speaking for on tech! In summary, it s really bad. There you go, I spared you a click 😉

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, based on 150 responses from “nearly every major semiconductor producer and from companies in multiple consuming industries,” does dive a little deeper into where the issues lie: The Department of Commerce says it’s clearly demand, not just supply constraints, that are bogging things down, with 17 percent higher demand for chips in 2021 vs. 2019. Now, the industry has just five days’ worth of inventory on shelves, down from 40 days’ worth in 2019. “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 report argues. A few types of chips are seeing the biggest impact: “legacy logic chips (used in medical devices, automobiles, and other products), analog chips (used in power management, image sensors, radio frequency, and other applications), and optoelectronics chips (used in sensors and switches).” Those impacted chips aren’t necessarily on the most advanced semiconductor nodes, like the brand-name Intel, AMD, Nvidia, Qualcomm, Samsung and Apple processors you might think of that use 5, 7 and 10nm. The report suggests chips that are far less dense, from 40nm all the way up to 800nm, are the ones seeing “significant semiconductor supply and demand mismatches.” “The primary bottleneck across the board appears to be wafer production capacity, which requires a longer-term solution.” “[F]rom Q2 of 2020 through 2021, semiconductor fabs operated at over 90% utilization, which is incredibly high for a production process that requires regular maintenance and very high amounts of energy.” What’s the Biden administration going to do about it? Well, the White House is using the report to argue that Congress urgently needs to pass the CHIPS Act — itself part of the US Innovation and Competition Act (USICA) — which frees up to $52 billion for domestic semiconductor manufacturing.