The Chip Crisis Could Cause Historic Damage to the U.S., the White House Warns

The U.S. production of cars has been massively impacted by the lack of chips 6 photos
Photo: General Motors
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Just like the rest of the world, the United States economy is also affected by the semiconductor crisis, as many local companies have been forced to temporarily suspend their operations because of the lack of chips.
The White House has reportedly held a classified briefing this week, and its goal was critical: the U.S. officials wanted to more accurately highlight the risks created by the chip shortage for the country’s economy, especially as the crisis is expected to continue beyond 2022.

The White House is already lobbying for massive funding for chip manufacturing subsidies, and per Reuters, the purpose of the briefing was to emphasize that Congress must approve the proposals as soon as possible.

However, the White House believes the semiconductor crisis could have a massive impact on the country’s economy unless it’s addressed as soon as possible.

A White House official said that a “significant interruption to our supply of semiconductors could cause historic damage to the U.S. economy,” emphasizing that such a problem could lead to other technological and military concerns in the long term.

However, dealing with the constrained chip inventory isn’t something that can be resolved overnight. While companies like Intel and Samsung have already expressed their intentions to manufacture chips in the United States, building the necessary factories and preparing them for the start of production takes time.

In the case of Intel, for instance, the production at a new $20 billion chip facility in Ohio is unlikely to start earlier than 2024. Industry analysts, however, expect the shortage to be over by that time, at least in some key industries, such as car manufacturing.

On the other hand, there are now concerns the semiconductor crisis could take more time to be resolved due to the geopolitical tensions fueled by the war in Ukraine. The invasion started by the Russian military has led to other shortages, including neon, as Ukraine has been one of the main suppliers of the gas required for the manufacturing of chips.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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