Supply Chain, Chips Shortage Issues To Be Felt 'Well Into 2022' - US Commerce Secretary

Supply-chain issues, including the shortage of microchips, are expected to be felt well into next year, US Commerce Secretary Gina Raimondo said during an appearance on the CNBC network on Friday

WASHINGTON (UrduPoint News / Sputnik - 08th October, 2021) Supply-chain issues, including the shortage of microchips, are expected to be felt well into next year, US Commerce Secretary Gina Raimondo said during an appearance on the CNBC network on Friday.

"There's no denying that it's a problem," Raimondo said when asked about the supply chain and semiconductor shortage issues that were holding up economic recovery from the coronavirus pandemic. "I think we're going to be feeling these effects well into 2022 and it's disruptive."

Raimondo said the problem with microchips was that they were manufactured almost entirely outside of the United States, particularly in Taiwan.

The Commerce Secretary said Congress had to urgently allocate funding for the $52 billion plan she proposed in May to build between seven and ten new semiconductor plants in the United States.

"Everyone knows we need to make chips in America," Raimondo said. "I think American companies are willing to step up and guarantee demand, and then we need to stimulate domestic production. So, yes, we can get this done, but we have to get to work."

Leading automakers in the world, from Japan's Toyota to the US General Motors and Ford, have slashed production this year due to microchip shortages emanating from labor and other disruptions caused by the measures to contain the coronavirus pandemic.