The shortage of microchips in production processes in the United States cost the American economy $240 billion, and electronics companies underwent the most significant impact.
Disturbances are started by the closure of big chip production manufacturers in Asia due to the COVID.
Semiconductor scarcity is poorly influencing the automotive sector. The most severe hit has been the automobile industry, as it heavily relies on chips to control the computer and the drives efficiently. As a result, companies have laid off the workforce, ramped down automobile production, and shut down plants.
on Friday the CEO of the Optimal Design company, Sajid Patel said, "Sometimes we've had to scale back production because of chips that were just frankly unavailable... I think it's important for us to make this product in the United States. We're not making enough of it now. We have to make more of it. And the only way that you do that is to have more plants. And so this is the investment, frankly, in the future. It's not that far off".
American solution
The shortage is reported to be unlikely to ease shortly, but Ohio hopes to be part of an American solution by offering Intel $2 billion in incentives to build an Ohio-based chip factory.
Ohio officials hope that a new $20 billion chip-making facility will help with the chip shortage and create a new tech hub.
according to Ohio's state development director said, “that the combination of tax breaks and incentives are likely the largest ever offered by Ohio for what state leaders say is the biggest economic development deal in its history.”