(FeaturedNews.com) – The Biden administration says the longstanding computer chip shortage may be about to get worse. It’s laying the blame for supply chain issues squarely at Russia’s feet. The Kremlin is allegedly considering blocking exports to the US, including materials, that play a critical role in making these vital parts.
National Security Council Senior Director for International Economics and Competitiveness Peter Harrell encourages the chip industry to find alternative sources for the needed materials.
The White House is warning the chip industry to diversify its supply chain in case Russia retaliates against threatened U.S. export curbs by blocking access to key materials, people familiar with the matter said. https://t.co/yqmlrmlBcS
— Newsmax (@newsmax) February 11, 2022
A senior White House official said the US is ready to deal with Russian interference. It plans to work with chip companies to reduce interference in production and supply chain operations. Companies may need to diversify their resources to get what they need from sources outside of Russia and Ukraine.
Some industry leaders say price increases are the worst possible outcome, while a total cut-off from access is unlikely to occur. Intel Corp, one of the largest producers of microchips and computer tech in the world, says it does not expect to experience any impact at all.
Despite such optimism, the tech industry must remain on alert. Demand will continue to rise; there is little room for problems or issues along the way. Something as simple as the inability to access rarer materials, such as cobalt could trigger severe shortages.
Copyright 2022, FeaturedNews.com