Posted on 01/26/2022 11:51:43 AM PST by blam
A Department of Commerce report on supply chain issues regarding American semiconductors has found ''a major supply and demand mismatch,'' and Commerce Secretary Gina Raimondo has called for ''extremely urgent'' legislation to address the crisis.
''This is why domestic semiconductor funding is extremely urgent,'' Raimondo wrote in a statement following the Biden administration report. ''The House of Representatives is preparing to introduce its version of the U.S. Innovation and Competition Act (USICA), which includes $52 billion in domestic semiconductor funding to help us create long-term solutions. The Senate has already passed its version of the bill with strong bipartisan support.
''I have been engaged daily with members on both sides of the aisle to get this done.
''Every day we wait is a day we fall further behind. But if we pass this bill and address this problem, we can create good jobs, rebuild American manufacturing, and strengthen our supply chains here at home for decades to come.''
The report, conducted on a request for information, issued the following primary findings:
•''Median demand for chips highlighted by buyers was as much as 17% higher in 2021 than 2019, and buyers aren't seeing commensurate increases in the supply they receive. This is a major supply and demand mismatch.
•''The median inventory of semiconductor products highlighted by buyers has fallen from 40 days in 2019 to less than 5 days in 2021 (see Figure 2). These inventories are even smaller in key industries.
•''The RFI allowed us to pinpoint specific nodes where the supply and demand mismatch is most acute, and we will target our efforts moving forward on collaborating with industry to resolve bottlenecks in these nodes.
•''The primary bottleneck across the board appears to be wafer production capacity, which requires a longer-term solution.''
(snip)
(Excerpt) Read more at newsmax.com ...
Intel Building Largest Chip Factory In The World Outside Columbus Ohio (Great News)
They want to siphon off the lion’s share for themselves.
Chip companies are extremely profitable. They don’t need $$$$ from the government.
Intel and AMD will dance with the devil for a few billion. The rest will go to friends of the party who will spend the money solyndra style. The scam works as follows: Connected Friend of rats gets grant or loan to build “chip factory.” Connected donates a percentage to rat campaigns or slush fund charity. Connected then squanders the money, produces next to nothing all while paying himself huge salary and bonuses. After few years whole enterprise goes belly up, loan is not repaid, and connected rat moves on to the next scam.
They need to raise the tariffs, until the chip companies produce in the US.
I’d be fine with some low interest loans to help companies quickly relocate manufacturing back to the US.
They also want to buy Ohio votes,
The private sector will solve this issue.
Intel is the right pick for it.
Keep the Gov out of it if you want it done anytime in the next century.
We would all be chitting in tall silicon wafers if trump was still in the cat bird seat
You nailed it...
But how much for the fish?
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