Will Companies Run Out Of Semiconductors? Commerce Dept Warns It Is Possible

The Commerce Department is sounding a grim warning that the shortage of semiconductor chips that power a range of products from smartphones to computers is approaching a breaking point.

On Tuesday, the Commerce Department released the results of a months-long industry-wide survey to determine the extent of the problem. What it found was that many U.S. companies were approaching their limits as they fell back on a reserve supply of only five days' worth of chips before they run out.

Secretary of Commerce Gina Raimondo called the entire situation “alarming,” but said the report demonstrated the...