Industries Pressure Washington To Act as Chip Crisis Worsens

Key Points

  • The administration and Congress are under pressure to help alleviate supply crunch in semiconductors

  • Policy makers and individual industries are debating how best to allocate a pledged $52 billion

  • Intel exec warns against using funds intended to bolster US chipmaking to protect specific verticals

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As a shortage in the chips that power everything from telecommunications to cars to computers continues to disrupt the U.S. economy, Secretary of the Department of Commerce Gina Raimondo met with dozens of executives to discuss how best to avoid future disruptions and build a more resilient supply chain.

There is a growing bipartisan consensus that support for the semiconductor industry is necessary, given the vital nature of the sector to practically every other industry.

In a related virtual hearing on the topic, Intel's Tom Quillin spoke saying, “There’s a risk of enormous unintended consequences from any single industry or vertical drawing too large of a specific allocation.”