Global Chip Shortage Through 2022: Commerce Sec.

US Commerce Secretary Raimondo has said to WSJ/BBG that the department expects global chip shortages to persist through 2022. That could continue to exacerbate a particularly acute source of US inflationary pressure with used car prices booming (wholesale prices up 60% since the pandemic).

• Says global chip shortage to stretch through 2022.
• There are reports of auto, medical chip price gouging.
• U.S. companies are down to five-day supply of key chips.
• Domestic semiconductor funding urgent, congress must act.
• The report, based on information from more than 150 companies in the chip supply chain, shows “there is a significant, persistent mismatch in supply and demand for chips.” The companies “did not see the problem going away in the next six months,” according to the report – BBG.