US Economy Loses $240 Bln In 2021 Due To Microchip Shortage - Reports
Shortage of microchips in production processes in the United States cost the American economy $240 billion last year, and electronics companies encountered the most significant impact, the US broadcaster CBS News reported, citing experts
WASHINGTON (UrduPoint News / Sputnik - 29th January, 2022) Shortage of microchips in production processes in the United States cost the American economy $240 billion last year, and electronics companies encountered the most significant impact, the US broadcaster CBS news reported, citing experts.
Disruptions were sparked by closure of major chip production plants in Asia due to the pandemic, according to the broadcaster.
"Sometimes we've had to scale back production because of chips that were just frankly unavailable... I think it's important for us to make this product in the United States. We're not making enough of it now. We have to make more of it. And the only way that you do that is to have more plants.
And so this is the investment, frankly, in the future. It's not that far off," the CEO of the Optimal Design company, Sajid Patel, told the broadcaster on Friday.
The microchip shortage also hindered car production, CBS News added. For example, Ford trucks were sent to parking lots from the production line where they were waiting for chips, instead of going directly to the dealership. Thus, the company incurred losses of $210 billion, the broadcaster said.
The shortage is reported to be unlikely to ease in the near future, but domestic chip production is expected to develop, and Intel announced construction of a chip plant in the US state of Ohio.