This is not a good sign.
In a shocking revelation, the U.S. Commerce Department announced that manufacturers has less than five days worth of certain computer chips on hand at the end of last year.
In comparison in 2019 those same manufacturers had easily over 40 days worth of computer chips at their disposal in case they were needed.
As a result of the shocking realization, the Washington Post reported that the Commerce Department is now begging Congress to set aside federal aid to begin chip development right here in the United States.
The Commerce Department further elaborated, “This means a disruption overseas, which might shut down a semiconductor plant for 2-3 weeks, has the potential to disable a manufacturing facility and furlough workers in the United States if that facility only has 3-5 days of inventory.”
Sadly, countless industries including the Car industry depends heavily on chips to build their products.
Commerce Secretary Gina Raimondo stated, “A covid outbreak, a storm, a natural disaster, political instability, problem with equipment — really anything that disrupts a [chip-making] facility anywhere in the world, we will feel the ramifications here in the United States of America. A covid outbreak in Malaysia has the potential to shut down a manufacturing facility in America.”
Biden needs to fix this problem as fast as possible.