US Department of Commerce addresses global chip shortage

The US has addressed the global chip shortages caused by "sky-rocketing demand" amid the pandemic.

The US Department of Commerce has said the only way to solve the semiconductors stock crisis is to "rebuild our domestic manufacturing capabilities".

The secretary of Commerce Gina Raimondo said in a statement: "With sky-rocketing demand and full utilisation of existing manufacturing facilities, it's clear the only solution to solve this crisis in the long-term is to rebuild our domestic manufacturing capabilities."

Out of 150 firms surveyed, it was found that supplies had drastically dropped from 40 days' worth pre-pandemic in 2019 to just five days towards the end of last year.

As consumers rushed to purchase cars, smartphones and home goods, manufacturers struggled to keep up.

Meanwhile, Samsung is expecting profits to surge by up to 52% as a result of the shortage.

The tech giant - which manufactures an array of televisions, phones and home appliances, and is the largest memory chip and smartphone maker in the world - estimated that it made 13.8tn won ($11.5bn; £8.5bn) in the period, which saw would make it the highest fourth quarter operating profit since 2017, although the result missed a Refinitiv SmartEstimate of 15.2 trillion won, which analysts attributed to items such as employees' bonuses.

Technology analyst Sam Reynolds commented: "Samsung is well placed to profit from the record-breaking demand for PCs and electronics. The Korean won continues to depreciate, making Korea's exports more attractive on the global market."

However, manufacturers such as car firms and Apple have experienced severe disruption.

© BANG Media International