U.S. Can Use “Fragile” Chip Shortage In Its Advantage To Stop China

(TheLibertyRevolution.com)- The Department of Commerce recently shed light on just how bad the shortage of semiconductor computer chips is in the United States.

On Tuesday, it released a report that said that companies that once had a supply of 40 days of the chips, on average, before the outset of the COVID-19 pandemic now only have on average about five days’ of the chips.

Gina Raimondo, the secretary of commerce, recently commented on the situation when she said:

“Five days of inventory. No room for error. That tells you how fragile this supply chain is.”

Many people think of disruptions in the supply chain as inconveniences. They see their packages getting delayed or shelves in stores being empty as the main results of the backlog.

However, it’s much more serious than that. The Center for Strategic and International Studies’ senior vice president and director of the Strategic Technologies Program, James Lewis, explain to Newsweek that the supply chain is ultra-critical to the country’s national security.

Most of the chips that are needed are currently being held up as part of the global supply chain — not the domestic one. While the U.S. has roughly 50% of the global market share of these chips — since it’s a leader in technology and design — only a little more than 10% of those chips are actually produced in America.

Much of the fabrication work for the chips happens by the Taiwan Semiconductor Manufacturing Company, with the chips then often packaged and tested over in China.

This means that China holds a lot of influence over how and when America actually gets the chips it needs, at a time when the Communist country is exerting extra influence over Taiwan and is becoming angrier by the day at the United States.

Lewis believes that, since the chips are so important to the national security and overall economy in America, the country needs to do something about it — and fast.

He said recently:

“No one should feel comfortable about a supply chain that depends on China, especially for an item that’s as critical. You can’t run a modern economy without chips, and, of course, no modern economy would greatly damage national security.”

There’s hardly a technology product on the market that doesn’t have semiconductor chips in it right now. Computers and phones are the two products that are most commonly associated with the chips, but cars and toasters have them, too.

In fact, a major reason for the huge spike in prices of new and used vehicles in the U.S. is due to the major shortage of chips.

There was a time when it made sense for many U.S. companies to have the chips produced overseas. Now, though, with China not being nearly as friendly as they used to be, Lewis said it’s much more prudent to fabricate them on American soil.