Chip Shortage Will Pose Challenges Next Year – US Official

A global shortage of semiconductor chips will pose a significant challenge to various industries next year, according to the US commerce secretary.

“For the next year or so, this will be a daily challenge,” Gina Raimondo said late Monday about the global shortage of the chips, which are required in various sectors from technology to automotive.

“We’re going to do everything we can to help the private sector get through it … and really just encouraging the private sector to work together and do everything it can in order to meet the short-term crunch,” she told the business news channel CNBC.

Raimondo said the US Senate may soon approve $52 billion to provide subsidies for American chip production, which is part of a larger bill that aims to boost US competitiveness with China.

Chip factory shutdowns due to the coronavirus pandemic, the US-China trade conflict, and a drought and power shortages in Taiwan have all been contributing to the shortage of semiconductors, negatively affecting around 170 different industries worldwide.