Biden Team Says Global Chip Shortage to Stretch Through 2022

Jenny Leonard
and Ian King
January 25, 2022, 7:00 PM GMT+3Updated onJanuary 25, 2022, 8:36 PM GMT+3

The Biden administration has concluded that a global semiconductor shortage will persist until at least the second half of this year, promising long-term strain on a range of U.S. businesses including automakers and the consumer electronics industry.
U.S. officials plan to investigate claims of possible price gouging for chips used by auto and medical device manufacturers, Commerce Secretary Gina Raimondo said Tuesday.
“We aren’t even close to being out of the woods as it relates to the supply problems with semiconductors,” Raimondo said in a briefing with reporters discussing the findings of an industry report her agency conducted that was released Tuesday.
The report, based on information from more than 150 companies in the chip supply chain, shows “there is a significant, persistent mismatch in supply and demand for chips.” The companies don’t see the problem being solved in the next six months, according to the report.

The Commerce report highlights the limited options available to the Biden administration as it tries to respond to the crisis, which has caused production delays for electronic devices and furloughs in the auto industry. The chip shortage is also a key driver of higher inflation, which has bedeviled President Joe Biden’s White House and threatens to help swing Congress to Republican control in November’s midterm elections.

This has been the cause of increase in the price of used cars… In Japan before COVID, Prados used to cost US$ 29,000 FOB or thereabout… Now the average is around 38,000 US Dollars FOB… Now, this is significant considering that the US$ to KES has really increased by close to Kshs. 10… Means an increase before taxes of close to a million… And from the above story, it appears like this will be the case the whole of this year.

I can foresee in one years time the resale value for the overpriced cars being equal or less to new cars at that time.

Kwani kuna shortage of silicon element? Si semiconductor inaundwa by doping silicon with boron ama phosphorus?