US Seeks Data on Chip Inventories to Ease Semiconductor Shortage

Discussion in 'Industry News' started by Calliers, Sep 25, 2021.

  1. Calliers

    Calliers Administrator/Editor Staff Member

    Oct 12, 2004
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    The ongoing semiconductor shortage has prompted the Biden administration to seek out sensitive data on exact chip orders and inventories across the supply chain.

    The goal is to “both diagnose chokepoints in the supply chain and offer firms data that can help them adapt their production processes to adjust to the supply shortage,” the White House announced on Thursday.

    According to US Secretary of Commerce Gina Raimondo, many companies expected back in May that the shortage would ease during Q3 2021, but that relief has yet to materialize. Instead, car companies including General Motors and Toyota have been forced to cut production.

    “Four months later, the situation seems to be getting worse,” Raimondo said on Thursday. “We are hearing regularly from companies that cannot get the supply they need. We also know the (COVID-19) delta variant has closed down key factories. This could hinder our strong recovery and could persist throughout 2022.”

    Not helping matters is the US’s limited visibility in the supply chain. “What’s still not clear is what specifically is happening,” Raimondo added. “For example, I don’t know who is overordering or who is not supplying at the levels expected...There’s so little transparency across the board. And that can’t continue.”

    However, the White House’s call for transparency may face a chilly reception because the data at stake is quite sensitive. For example, the government is asking chip providers to identify their top customers and divulge annual sales data, including how quickly they fulfill orders. Chip buyers are also being asked to detail how the semiconductor shortage has disrupted production.

    For now, the Commerce Department is calling on companies to share the data on chip orders and inventories voluntarily. However, Bloomberg notes the Biden administration is mulling invoking a national security law to compel industries to hand over the data.
    Source: pcmag

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