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Chip shortage cost U.S. economy billions in 2021

Mount Equity Group Tokyo Japan > News > Markets > Chip shortage cost U.S. economy billions in 2021

Supply chain shortages have hit virtually every industry, but it’s the microchip shortage that’s having the biggest impact. Experts estimate the global chip shortage cost the U.S. economy $240 billion in 2021. 

Some U.S. manufacturers have less than five days’ worth of inventory, according to the Commerce Department. 

At Optimal Design near Chicago, a chip shortage is causing big headaches. The company engineers and builds everything from virtual reality headsets to the brains of barbecue grills. Every product needs a chip to work. 

“Sometimes we’ve had to scale back production because of chips that were just frankly unavailable,” CEO Sajid Patel told CBS News. 

When the pandemic shut down the major chip production plants in Asia and ports got overwhelmed, the ripple effect was felt worldwide. 

The shortage even put the brakes on car production. Unfinished Ford trucks went from the production line to parking…

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