Shutdowns of key Asian suppliers due to the Covid-19 pandemic crippled supplies last year, just when American consumers, flush with cash from government aid, went on a spending spree buying cars and electronics, which depend on the chips
Workers cross a road in front of the Samsung Electronics Co. semiconductor manufacturing plant in Pyeongtaek, Gyeonggi Province, South Korea, on Jan 6, 2022. (Credits: SeongJoon Cho / Bloomberg via Getty Images)
The global shortage of critical semiconductors is likely to last at least through next year and perhaps longer, US Commerce Secretary Gina Raimondo warned on Tuesday.
Shutdowns of key Asian suppliers due to the Covid-19 pandemic crippled supplies last year, just when American consumers, flush with cash from government aid, went on a spending spree buying cars and electronics, which depend on the chips.
"I do not unfortunately see the chip shortage abating in any meaningful way anytime in the next year," Raimondo told reporters following her recent trip to Asia.
She said she convened a dozen CEOs, including leaders of chipmakers, during her time in South Korea to discuss the shortage "and they all agreed that ... deep into 2023, possibly early '24 before we see any real relief."