(Washington) US Secretary of Commerce Gina Raimondo warned Tuesday that the shortage of semiconductors is likely to last a long time, pointing to 2024 to see a real improvement.
Posted at 1:00 p.m.
Demand for microchips has exploded during the pandemic causing a shortage now amplified by factory closures in China due to resurgences of COVID-19.
“Unfortunately, I don’t see the chip shortage easing significantly over the next year,” she said on a conference call following her trip to Asia.
“During my trip, I summoned a dozen CEOs […] in Korea,” she said, pointing out that these represented a wide range of industries from tooling to semiconductor production. “And they all agreed that we have to wait until the end of 2023, or even the beginning of 2024, to see any real improvement.”
Semiconductors are ubiquitous in everyday life. Mainly made in Asia, they are essential for the manufacture of cars, smart phones or even medical equipment and vacuum cleaners.
With the pandemic, manufacturers have seen these reserves of chips melt to an alarming level.
According to Gina Raimondo, business leaders are pointing the finger at the fact that Congress is struggling to pass legislation to support chip production in the United States when “every other country now has subsidies on the table”.
And if Congress does not act quickly, companies like Samsung, Intel, could go and build factories in countries other than the United States. “It would be extremely problematic,” repeated Gina Raimondo, who for months has been urging lawmakers to agree as the competitiveness of the United States is at stake.
The US Senate approved a text at the end of March which should make it possible, with tens of billions of dollars, to strengthen US industry in the face of competition from Asia, including China, in key sectors such as semiconductors. .
A similar bill, the “America COMPETES act”, was passed by the House of Representatives in February.
But the two assemblies of Congress have not yet agreed on a common text on these measures totaling 52 billion dollars.