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MoreBack to News Headlines
Some manufacturers have less than 5 days' supply of computer chips, Commerce Department warns

Some manufacturers have less than 5 days' supply of computer chips, Commerce Department warns

CNN
Wednesday, January 26, 2022 9:45 AM GMT

Some manufacturers that rely on semiconductors are down to less than five days' worth of inventory, according to a report released Tuesday by the Commerce Department, in the latest indication of the extent of the computer chip shortage.

The report, based on more than 150 responses to a Commerce Department request for information from businesses that produce and use semiconductors, found that the median supply of chips held by manufacturers has dropped from 40 days' worth in 2019 to less than five days' worth last year.

The limited supply means that disruptions to production overseas — such as those from weather or new Covid-19 outbreaks — could again lead to factory shutdowns and furloughed workers in the United States, according to the report. It notes that inventories are even smaller in "key industries."

Read full story on CNN
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