Global Chip Shortage Update: January 2022
We’ve been keeping an eye on the chip shortage all year long, and while things haven’t been moving all that quickly, it doesn’t mean that things haven’t been moving at all. If you Google “chip shortage”, you’re sure to find a number of contrasting reports. Here’s what is really important to keep an eye on:
The CHIPS for America Act (or CHIPS Act)
The CHIPS for America Act, a bill pushing its way through congress right now, is built to bolster funding for semiconductors to end the shortage as quickly as possible. It made it through the Senate back in June, but wasn’t able to be passed before the new year.
Recovery takes time
Things aren’t back to where they need to be, but they are getting better. Micron for example, a producer of semiconductors, reported strong numbers in December of 2021, seeing their stock rise. They are still underperforming against normal production pre-COVID, but have made better progress than expected, which is encouraging to hear. Current numbers across all of the semi-conducter manufacturing industry suggests that there has been an increase in production by nearly 44% from July 2020 to July 2021.
Our best hope now is that the House of Representatives can pass the CHIPS Act in early 2022, freeing up funds to boost manufacturing. As more developments happen, we’ll be updating you as best we can.