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Chip Shortage Leaves U.S. Companies Dangerously Low on Semiconductors, Report Says

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U.S. companies that use semiconductors are down to less than five days of inventory for key chips, according to a new Commerce Department report WSJWhatsNow

WASHINGTON—U.S. manufacturers and other companies that use semiconductors are down to less than five days of inventory for key chips, the Commerce Department said Tuesday, citing the results of a new survey.

In 2019, companies typically maintained 40 days of inventory for key chips, according to the Commerce Department report. Now for the same chips—defined as 160 products that companies identified as being the most challenging to acquire—companies are operating with fewer than five days of inventory, the report said.

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So much for their brilliance in sourcing. How is it that Tesla and Apple don’t have any problem and they both utilize more than a bit in each of their products.

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