US Commerce Secretary Says "Semiconductor Crisis Will Continue Next Year"

[Asia Economy Reporter Yujin Cho] Gina Raimondo, the U.S. Secretary of Commerce, forecasted that the global semiconductor supply crisis will continue into next year.

In an interview with CNBC on the 7th (local time), Secretary Raimondo said, "The semiconductor shortage will remain a daily challenge next year."

She stated that the Biden administration is communicating with the relevant industries to enhance transparency and accuracy in the semiconductor supply chain. She also mentioned that the private sector is being encouraged to collaborate and utilize all possible methods to resolve the short-term supply shortage.

She emphasized, "Although the situation has partially improved, such as some General Motors (GM) plants resuming operations, the problem will persist into next year," adding, "We will spare no support to solve the issue."

She further added that the Senate is expected to approve semiconductor production subsidies worth $52 billion (approximately 57.824 trillion KRW) this week.

Meanwhile, U.S. consulting firm AlixPartners projected that the global automotive industry's revenue loss due to the semiconductor chip shortage will reach about $110 billion this year. This is an 81% increase compared to the revenue loss estimate of $60.6 billion made at the end of January this year.

This content was produced with the assistance of AI translation services.