The chip shortage is a manufacturing problem that won’t be easy to solve


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So, here’s what’s going on with the chip shortage thing. First, among U.S. chipmakers, only Intel fabricates its own chips in the U.S. The rest contract with big companies, mostly in Taiwan and South Korea, known as fabs, which is short for semiconductor fabrication plants. The biggest are TSMC and Samsung. The facilities are incredibly expensive and take years to build and even upgrade. Now add in the pandemic, lots of people at home buying computers and slowdowns in the actual manufacturing, and there aren’t enough chips for cars, medical equipment or all those other devices. Last week, President Joe Biden requested $37 billion from Congress to kick-start the domestic supply chain for chips. Molly Wood talks with Anshel Sag at Moor Insights & Strategy about whether that will be enough money.

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