U.S. manufacturers down from 40 to five-day chip supply

AUTOS

U.S. Commerce Dept says chips shortage to persist, will review some pricing

Published Tuesday, January 25, 2022 12:22PM EST

General Motors Detroit-Hamtramck assembly plant

At the General Motors Hamtramck assembly plant on Nov. 30, 2010. (AP / Paul Sancya)

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WASHINGTON, -- The U.S. Commerce Department said Tuesday a survey of semiconductor chips producers and users shows a shortage will persist, sparked primarily by wafer production capacity.

it will "engage industry on node-specific problem solving in the coming weeks. We will also look into claims about unusually high prices in these nodes."

"Demand for chips is high. It is getting higher," Commerce Secretary Gina Raimondo told reporters, adding demand is now about 20 per cent above 2019 levels. "There is not a lot of good news" in this survey, she added.

The voluntary survey of 150 companies last fall in the supply chain confirmed "there is a significant, persistent mismatch in supply and demand for chips, and respondents did not see the problem going away in the next six months."

The department said median inventory for consumers for key chips has fallen from 40 days in 2019 to less than 5 days in 2021.

(Reporting by David Shepardson)