U.S. Commerce Secretary: Global chip shortage may continue until 2023

U.S. Commerce Secretary Gina Raimondo warned today that a global shortage of key semiconductors could continue into next year or even longer.

In 2021, supply was paralyzed as the COVID-19 pandemic shut down major suppliers in Asia, and just as American consumers received a lot of cash from government aid, they began to frantically buy chip-dependent cars and electronics, AFP reported.

"However, I do not see the chip shortage abating in any meaningful way at any time next year," Raimondo told reporters after a recent trip to Asia.

She mentioned that she convened a dozen CEOs, including leaders of chipmakers, to discuss the shortage while in South Korea, and “they all agreed that we won’t see any real relief until 2023, probably early ’24.”

She again called on Congress to act to fund legislation aimed at spurring domestic manufacturing of computer chips, which are key to everything from smartphones to medical devices to vacuum cleaners.