Fabs stretched skinny as chip scarcity shrinks inventories to simply 5 days

A masked work in gloves holds up a computer component.

Enlarge / A employee checks a mainboard at a Vingroup manufacturing facility in Hanoi, Vietnam. (credit score: NHAC NGUYEN/AFP)

US chip provides are near the breaking level as a brand new survey reveals diminished inventories and overstretched fabs.

The numbers put the chip scarcity in stark aid. In 2021, firms that buy semiconductors had lower than 5 days of stock readily available versus the 40 days of stock they’d in 2019, in line with a survey of greater than 150 firms carried out by the US Division of Commerce. On the identical time, demand was up 17 p.c. Most of the firms surveyed stated that demand exceeded their inner forecasts.

“We aren’t even near being out of the woods because it pertains to the provision issues with semiconductors,” Commerce Secretary Gina Raimondo stated on a press name Tuesday. “The semiconductor provide chain could be very fragile, and it’s going to stay that means till we are able to enhance chip manufacturing in the US.”

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