Chip sales increased significantly during the pandemic, when in many countries people were forced to stay at home. They spent their free time playing computer games and generally spent more time online, so they bought more electronic devices. To this was added work from home and school teaching at a distance, which often required the purchase of additional computer equipment.
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Chip manufacturers have not been able to respond to significantly higher demand. The situation was also complicated by the closures imposed due to the pandemic, and sometimes the lack of staff if some of them had to remain in quarantine due to the covid-19 infection. The lack of chips has severely disrupted the plans of key sectors of the economy. Chips are used in millions of products, from cars to washing machines to smartphones and other devices.
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“As demand rises sharply and manufacturing plants operate using all capacity, it is clear that the only solution to this crisis is to restore domestic production capacity in the long run,” US Secretary of Commerce Gina Raimond said in a statement.
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The survey also showed that demand for chips was up to 17 percent higher last year compared to 2019, ie before the pandemic. Politicians from the US Democratic Party on Tuesday unveiled a legislative proposal aimed at increasing the competitiveness of the United States against China. The proposal also envisages investments of $ 52 billion (CZK 1.1 trillion) in semiconductor manufacturing and related research. The US Senate approved the funding last June, the BBC noted.
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US President Joe Biden
Photo: Kevin Lamarque, Reuters
President Joe Biden’s administration is trying to persuade Congress to support funding to increase chip production in the United States. The lack of these key components has contributed to the problems that supply chains have been facing for more than a year due to the pandemic.
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US microchip maker Intel announced last week that it was investing $ 20 billion in the construction of another production plant in the state of Ohio. His plans could lead to the creation of the world’s largest semiconductor manufacturing complex.
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Already last November, South Korean chip maker Samsung announced that it had chosen a location near Taylor, Texas, to build a $ 17 billion computer chip plant. The factory is expected to be operational by the second half of 2024. For Samsung, this is the largest investment he has ever made in the United States.
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