The Biden Administration fears the shortage of the US supply of computer chips after it reportedly reached alarmingly low levels.
According to the official announcement, the shortage could lead countless American manufacturers to shut down and noted that it’s putting the U.S. manufacturing plants in a vulnerable state.
In a statement that the Commerce Department released during the press release, they warned the public about the possible shutting down of the US manufacturing facilities if the Covid outbreak, political instability or natural disaster continues to disrupt the foreign semiconductor facility for even just a few weeks.
They also noted that the shortage could possibly put the “American workers and their families at risk.”
“There is essentially no room for error,” Commerce Secretary Gina Raimondo said.
Biden admin fears alarming chip shortage could shut down factories across US; companies are down to just 5 days of inventory https://t.co/8pfpVnU1ya
— TheBlaze (@theblaze) January 26, 2022
Moreover, the Biden administration also urged the Congress to quickly pass the CHIPS Act. The act aims to free up to $52 billion federal funding for domestic semiconductor manufacturing in response to the shortage.
“The semiconductor supply chain remains fragile, and it is essential that Congress pass chips funding as soon as possible. With sky-rocketing demand and full utilization of existing manufacturing facilities, it’s clear the only solution to solve this crisis in the long-term is to rebuild our domestic manufacturing capabilities.” Raimondo added
“Every day we wait on this funding is a day we fall further behind,” she continued.
