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Commerce Dept. Finds Jump in Chip Demand

Commerce’s Sept. 24 request for information into the global semiconductor shortage (see 2109230038) found semiconductor demand “continues to far outstrip supply,” reported the department Tuesday. “Median demand for chips highlighted by buyers was as much as 17% higher in 2021…

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than 2019, and buyers aren’t seeing commensurate increases in the supply.” Secretary Gina Raimondo blogged that it's “essential that Congress move swiftly” to pass the U.S. Innovation and Competition Act. The median inventory of semiconductor products highlighted by buyers fell to fewer than five days in 2021 from 40 days in 2019, said Commerce. Inventories are even smaller in “key industries,” like broadband, it said. The agency will “capitalize” on the data gleaned from the RFI “to engage industry on node-specific problem-solving in the coming weeks,” said the report.