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Tuesday, June 22, 2021

Chip shortage affects tech and automotive companies

The list of chip-maker leaders will be extended since Apple Inc, Alphabet Inc’s Google and Microsoft Corp will be joining to create an influential group to press for government chip producing help. 

The brand new Semiconductor in America Coalition – Amazon.com being one of them, have stated that they requested US legislators to give funding for the CHIPS Act.

”Robust funding of the CHIPS Act would help America build the additional capacity necessary to have more resilient supply chains to ensure critical technologies will be there when we need them” said the group in their letter to both houses of the US Congress.

There has been a worldwide chip shortage with a big impact on automakers too. Additionally, Ford Motor Co explained that this could cut in half the second-quarter production. Automaker companies have also asked the Biden administration to acquire them with chip supply.

This newly formed coalition includes members such as AT&T, General Electric, Hewlett Packard Enterprise, Verizon Communications Inc as well as Cisco Systems. ”Government should refrain from intervening as industry works to correct the current supply-demand imbalance causing the shortage.” the group further said.

Chip shortage is affecting tech companies as well (Apple being one of them), however, they they seem to be less severe than automotive companies. The consequences of ship shortage in tech companies will include a loss of sales from $3 billion up to $4 billion, and that is equivalent to a minor percentage of the $72.9 billion in sales.

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