Congress Fighting Over How to Fix Computer Chip Shortage

In distinctive American style , the government has determine that the best way to fix the late figurer chip famine is to hurl more money at it .

There’s a computer chip shortage…?

Yup , and there are a few unlike culprits behind it . It seems that the need forcomputer chipsbegan to arise during the commencement of the pandemic as swarm of Americans began to work from plate , produce the need to setup dwelling agency . At the same time , some major estimator chip factories in Asia were forced to close down due to Covid-19 lockdown , threatening American imports from the region . Other factor likesevere wintertime weather , fires at factories , and even aneon dearth fueled by the Ukrainian - Russian warare all causing production issues .

The shortage is incredibly problematic on multiple fronts . These chips are found in everything fromcars , to smartphones , to laundry auto , to different lifesaving medical devices . In a report in the beginning this year , the Department of Commercefound that the requirement for computer chips rose 17 % from 2019 to 2021 , and the current production and provision is only not meeting this shape . “ This is a major supply and demand mismatch , ” the report say , and that ’s combine by the fact that the United States only produces12 % of the worldly concern ’s supplyof computer chips .

The government is stepping in

There are presently two peak in Congress that the administration hopes will fall the impact of the current shortage . Last year , the Senate passed the U.S. Innovation and Competition Act while the America COMPETES Act passed in the House in February 2022 . Both measuring rod have some major similarities — notably some hefty financial backing for domestic micro chip fabrication and research — but negotiations are still being hammer out before any statute law reaches President Biden ’s desk for a key signature .

The Associated Press is reportingthat there are some major points of tilt between the eyeshade . The House bill is allocating $ 45 billion to amend America ’s supply range of mountains issuing , while there is no such provision in the Senate ’s bill . Both the House and the Senate will need to make some grant in parliamentary law to get some package out of Congress , and their incentive to do so could be to evoke up whatever grace they can ahead of the forthcoming November midterm election .

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The global computer chip shortage is coming to a head in Congress.