It’s no secret by now that the hardware and technology industry hasn’t been doing so well over the past year or so thanks to the ongoing COVID-19 pandemic. That’s due to a massive increase in demand that semiconductor manufacturers can’t meet at the moment. Thankfully though, a new act has been passed in the US government that will see increased spending on chip makers in the United States, easing the chip shortage over the next few years.
The US Innovation and Competition Act (originally known as the Endless Frontier Act) features various large investments into technology companies that are based on the US, $52 billion of which is aimed at semiconductor manufacturers alone.
The aim is to increase production and capacity, whilst also freeing up stress on Asian manufacturers (such as TSMC and Samsung) who so far have dominated the chip industry. Because of this reliance, and limited US-based manufacturers, it has been particularly difficult to get supply to meet demand across the globe.
What this means for us though is more availability for PC components and a significant drop in prices as no more shortages means no more inflated prices. Unfortunately, it won’t be anytime soon, as it takes a while for new foundries to be constructed and update existing ones too, so we’re still looking at a Global Chip Shortage that will last until the end of next year at the earliest.
John Neuffer, CEO and President of the Semiconductor Industry Association, recently celebrated the bill’s passing in the US Senate, saying that it is a “pivotal step toward strengthening US semiconductor production.”
“We call on the House to swiftly pass needed federal investments in domestic chip technology and send legislation to the President’s desk to be signed into law,” they continued. “Enactment of these investments would help strengthen America’s economy, national security, technology leadership, and global competitiveness for years to come.”
What do you think? Have you been trying to get new PC hardware recently? When do you think we’ll start seeing better availability for PC hardware? And when will we start seeing better prices as well? Let us know your thoughts!