Manufacturers struggling with demand amid global chip shortage

According to BBC News, manufacturers have seen their stocks of semiconductors plunge amid the global chip shortage.

A survey of more than 150 firms found supplies had fallen from an average of 40 days' worth in 2019 to just five days in late 2021. Semiconductor makers is struggling to keep up with demand.

The shortage has resulted in huge disruptions for major industries. Millions of products - cars, smartphones, smartwatches and more, rely on these chips.

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The US secretary of commerce Gina Raimondo said in a statement providing a solution to the shortage of semiconductors in America. "With sky-rocketing demand and full utilisation of existing manufacturing facilities, it's clear the only solution to solve this crisis in the long-term is to rebuild our domestic manufacturing capabilities."

Joe Biden

Meanwhile, US President Joe Biden's administration is pushing to persuade Congress to approve funding to help boost chip production in the US, as shortages of the key components have exacerbated supply chain bottlenecks.