“We shut things down because we didn’t think there would be a huge appliance need during a pandemic. Then, everybody decided they wanted to buy new appliances. They had to scale back up again quickly and start producing these washers, dryers, stoves. It was kind of a double-edged sword.”
Companies such as California-based Intel are saying the chip shortage “could last two or three years,” Tilly said.
To bulk up operations, Intel announced this year that it will spend $20 billion to build two major factories in Arizona and invest $3.5 billion to equip its facilities in New Mexico for the manufacturing of advanced semiconductor packaging technologies.
In addition, President Joe Biden recently detailed his administration’s vision for reviving the U.S. production of semiconductors, large capacity batteries, critical minerals and pharmaceuticals in a report that followed its 100-day review of critical supply chains.
“Congress should authorize and fund incentives to support key upstream — including semiconductor manufacturing equipment, materials, and gases — and downstream industries throughout the supply chain,” the report reads.
Earlier this year, the state of Oklahoma introduced Connex Oklahoma, a free online supply chain database tool for the manufacturing industry. One of only three such platforms in the country, it was developed by Oklahoma Manufacturing Alliance in partnership with the Oklahoma Department of Commerce.