US presses companies over chip concerns - Mobile World Live

US presses companies over chip concerns

24 SEP 2021

US Secretary of Commerce Gina Raimondo reportedly mooted taking action against domestic companies which fail to disclose information about semiconductor supplies, as the government seeks to counteract hoarding and stockpiling.

Bloomberg reported Raimondo may recommend invoking a national defence production law to force companies to provide details of their chip supply chains. The legislation enables upper tiers of government to compel private companies to prioritise production or shipments for it, with the President granted powers to order competitors to work together on specific initiatives.

The White House issued a statement explaining Department of Commerce officials tasked businesses with answering a questionnaire to “diagnose chokepoints in the supply chain” and provide information to help “them adapt their production processes”.

A global semiconductor shortage continues to impact companies across the mobile industry, although smartphone sales have remained strong.

Some executives have noted buyers are building-up inventories, constricting supplies for companies with immediate needs for semiconductors.

Gathering information from US companies is part of a larger government initiative to combat supply shortages, which also includes working with governments in Southeast Asia to ensure factories remain open.

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Martha DeGrasse

Freelance tech journalist Martha DeGrasse (@mardegrasse) is delighted to be contributing to Mobile World Live. Martha has written for a number of telecom and wireless publications, and was a writer, editor and video producer at RCR Wireless News for almost...

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