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White House Expects Global Chip Shortage to Last at least Another Six Months

U.S. Commerce Secretary Gina Raimondo

Commerce Secretary Gina Raimondo said there is no one thing that will fix supply chains, “So we have to do everything and all of the things we do, marginally, will improve the problem.”

Credit: Win McNamee/Getty Images

The White House expects the current global semiconductor shortage hampering automobile, medical device, and consumer electronics supply chains to continue through at least the second half of 2022, Bloomberg reports.

"We aren't even close to being out of the woods as it relates to the supply problems with semiconductors," said Commerce Secretary Gina Raimondo discussing an industry report her agency released Tuesday. The report says "there is a significant, persistent mismatch in supply and demand for chips." And according to the over 150 companies surveyed, the problem is unlikely to be resolved in the next six months.

What's more, Raimondo said "median inventory has fallen from 40 days to fewer than 5 days, resulting in no room for error," Bloomberg writes. Any sort of COVID or weather-related disruption to overseas manufacturers could portend shutdowns and furloughs in America.

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