Apple is expected to address supply constraints during Thursday’s Q1 Earnings Call. Those expectations were likely heightened on Tuesday. CNET ran a piece that had the U.S. government warning that the chip shortage persists and will for a while. A report from the US Department of Commerce says even with chip plants running at 90% output or greater, demand is still outstripping supply. The agency estimates “that demand was as much as 17% higher in 2021 than in 2019,” according to CNET.
The solution, according to the Department, is to build more capacity and build it in the U.S. CNET quotes a statement from Secretary of Commerce Gina Raimondo, saying:
The semiconductor supply chain remains fragile, and it is essential that Congress pass chips funding as soon as possible… With sky-rocketing demand and full utilization 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.
