{"id":8839,"date":"2022-09-12T15:04:18","date_gmt":"2022-09-12T15:04:18","guid":{"rendered":"http:\/\/lonecandle.com\/?p=8839"},"modified":"2022-09-12T15:04:18","modified_gmt":"2022-09-12T15:04:18","slug":"the-chips-act-wont-solve-the-chip-shortage","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=8839","title":{"rendered":"The CHIPS Act won\u2019t solve the chip shortage"},"content":{"rendered":"\n<p>\n\n&#8220;On its face, the idea of increasing semiconductor manufacturing in the US seems like it would help address the global supply crunch for computer chips, which has made it harder to buy everything from&nbsp;<a href=\"https:\/\/www.vox.com\/recode\/22336388\/gm-chip-shortage-ford-semiconductors-biden\" target=\"_blank\" rel=\"noreferrer noopener\">cars and laptops<\/a>&nbsp;to&nbsp;<a href=\"https:\/\/www.wsj.com\/articles\/expanding-from-autos-to-appliances-and-sex-toys-the-chip-shortage-is-far-reaching-11619783117\" target=\"_blank\" rel=\"noreferrer noopener\">sex toys and medical devices<\/a>&nbsp;during the pandemic. Senate Majority Leader Chuck Schumer (D-NY) has even suggested that the funding package&nbsp;<a href=\"https:\/\/www.democrats.senate.gov\/dpcc\/press-releases\/majority-leader-schumer-floor-remarks-on-moving-forward-with-chips-legislation\" target=\"_blank\" rel=\"noreferrer noopener\">could help fight inflation<\/a>, presumably by making these goods cheaper.<\/p>\n\n\n\n<p>But while it\u2019s certainly fair to call the legislation a victory for bipartisanship, this plan is primarily focused on keeping up with China\u2019s growing investment in its own domestic chip industry \u2014 not solving the present issues with the tech supply chain. The chip factories produced by this package won\u2019t be complete for years, and the bulk of the funding won\u2019t necessarily go toward basic chips, also known&nbsp;<a href=\"https:\/\/www.wsj.com\/articles\/semiconductor-industry-isnt-spending-big-on-scarce-old-tech-chips-11636453801\" target=\"_blank\" rel=\"noreferrer noopener\">as legacy chips<\/a>, which account for&nbsp;<a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/speeches-remarks\/2022\/07\/26\/remarks-by-president-biden-in-meeting-with-ceos-and-labor-leaders-on-the-importance-of-passing-the-chips-act\/\" target=\"_blank\" rel=\"noreferrer noopener\">much of the ongoing shortage<\/a>. And that shortage may be nearing its end anyway.&#8221;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.vox.com\/recode\/2022\/7\/27\/23277664\/chips-act-solve-chip-shortage-biden-manufacturing\">https:\/\/www.vox.com\/recode\/2022\/7\/27\/23277664\/chips-act-solve-chip-shortage-biden-manufacturing<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;On its face, the idea of increasing semiconductor manufacturing in the US seems like it would help address the global supply crunch for computer chips, which has made it harder to buy everything from cars and laptops to sex toys and medical devices during the pandemic. Senate Majority Leader Chuck Schumer (D-NY) has even suggested that the funding package could help fight inflation, presumably by making these goods cheaper.<\/p>\n<p>But while it\u2019s certainly fair to call the legislation a victory for bipartisanship, this plan is primarily focused on keeping up with China\u2019s growing investment in its own domestic chip industry \u2014 not solving the present issues with the tech supply chain. The chip factories produced by this package won\u2019t be complete for years, and the bulk of the funding won\u2019t necessarily go toward basic chips, also known as legacy chips, which account for much of the ongoing shortage. And that shortage may be nearing its end anyway.&#8221;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[1229,217,165,1469,906,377,411,1005],"class_list":["post-8839","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-chips","tag-economics","tag-economy","tag-government-intervention","tag-legislation","tag-manufacturing","tag-policy","tag-technology"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/8839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8839"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/8839\/revisions"}],"predecessor-version":[{"id":8840,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/8839\/revisions\/8840"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}