As global chip shortages continue to be in demand, experts are calling on the government to help U.S. manufacturers make more chips.
The demand for tokens increased during the pandemic, and production disruptions and supply chain problems have made it difficult for suppliers to keep up to date. A recent Department of Commerce report found that chip demand in 2021 was up 17% higher than in 2019.
CBS News correspondent Meg Oliver visited a microchip production plant in New York State that is trying to increase production. GlobalFoundries, about 20 miles north of Albany, produces about a million chips a day, but demand is so high that the company says it needs to produce at least 10 times as much.
“It’s extremely complex, and as capacity demand increases, so does complexity,” said Christopher Belfi, the company’s equipment engineering manager, as he described the delicate production process.
Chips are needed for almost every device, including laptops, appliances such as refrigerators, game consoles, and medical equipment. The US produces only about 12% of the world’s supply and has done so it depended heavily on chips produced in Asia. But when the pandemic hit, it shut down major production plants, reducing supply.
“We don’t want to rely on foreign entities to be able to give us the brains and guts of what drives our vehicles, devices and mobile phones on a daily basis,” Belfi said.
There is a renewed focus on producing more chips at home, as some experts warn that not doing so could also be a national security risk. The House of Representatives is currently considering the Chips for America Act, which would provide U.S. manufacturers with $ 52 billion in funding to help boost domestic production.
“Well, I think it starts with security first,” said Tom Caulfield, CEO of GlobalFoundries. “The second is, just think of the economic activity that a manufacturing facility brings to the United States. We employ more than 3,000 workers here.”
Experts estimate the shortage of chips it cost the US economy about $ 240 billion last year. And it could be years before the scarcity ends.
“I’d like to be more optimistic and tell you that around the corner, help is on its way,” Caulfield said. “It’s just the complexity of technology that takes years to increase capacity. And I think for most of the next five or ten years, we’ll be chasing supply in this industry, not demand.”
Caulfield says they will continue to try to meet demand, but they need private investment and federal funding through the chip bill. Both the House and Senate have passed their own versions of the Chip for America Act, and while there seems to be bipartisan support, there is still no agreement and therefore no funding.
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- supply chain
- New York
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