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FCC studying impact on chips shortage on U.S. communications sector

Reuters2021-05-12

WASHINGTON, May 11 (Reuters) - The Federal Communications Commission $(FCC.AU)$ on Tuesday said it was seeking comments on the impact the continuing global shortage of semiconductors is having on the U.S. communications sector.

The supply shortage has especially hit the U.S. auto industry hard, the FCC noted, as automakers have sharply cut production because of a lack of chips. Ford Motor Co has warned the shortage could halve second-quarter production.

An industry group warned in April that broadband providers were facing chip delays, resulting in delays delivering some cable TV boxes and seeing delayed "network switches, routers, and servers."

The group said semiconductors shortages "will result in hundreds of millions of dollars in impact to the broadband and cable television industry this year."

The FCC asks "what steps can be taken to prevent similar challenges in the future, particularly those challenges related to unanticipated, catastrophic, global events?" and to what extent shortages are driving "changes to the communications industry more broadly."

"We are pursuing a proactive strategy to help build a more secure, resilient, and next-generation communications supply chain," said Acting FCC Chairwoman Jessica Rosenworcel in a statement.

On Tuesday, some of the world's biggest chip buyers, including Apple Inc , Microsoft Corp and Alphabet Inc's Google, joined top chip-makers such as Intel Corp to create a new lobbying group to press for government chip manufacturing subsidies.

The new group asked U.S. lawmakers to provide funding to boost U.S. chips production, for which President Joe Biden has asked Congress to provide $50 billion.

Automakers want the Biden administration to secure chip supply for car factories but tech companies oppose favoring a single industry.

Tech companies such as Apple are also being hit by the chip shortage, but less severely.

The iPhone maker said last month it will lose $3 billion to $4 billion in sales in the current quarter ending in June because of the chip shortage, but that equates to just a fraction of the $72.9 billion in sales analyst expect for Apple's fiscal third quarter, according to Refinitiv revenue estimates.

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Comment11

  • [微笑] 
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  • NareshwG
    ·2021-05-12
    Semiconductor is the future of the world.. So, we need them.. 
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  • JaydenSee
    ·2021-05-12
    Pls like and comments 
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    • JaydenSee
      [得意]
      2021-05-13
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    • chillllll
      yea
      2021-05-12
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    • cutemiao
      Done
      2021-05-12
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  • LohYK
    ·2021-05-12
    It's not a shortage but a exponential surge in demand. 
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    • ckww
      I do agree with this view. As lots of things requires chips to run nowadays.
      2021-05-12
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  • EY12
    ·2021-05-12
    Like & comment[微笑] 
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    • EY12
      thanks
      2021-05-12
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  • James3128
    ·2021-05-12
    Pls comment and like 
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  • Henryee18
    ·2021-05-12
    Gosh, don't drop anymore please.
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  • UBEKN
    ·2021-05-12
    Let's use the phone a bit longer
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  • UBEKN
    ·2021-05-12
    Will price of phones go up...let's use thebphone a bit longer..[OK] 
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  • rDj
    ·2021-05-12
    Like and comment pls
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    • rDj
      Thx
      2021-05-16
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    • rDj
      .
      2021-05-16
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    • Huathk
      Gd
      2021-05-12
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  • 股神不是我
    ·2021-05-12
    Ok
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    • Mich77
      ??
      2021-05-13
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    • Mich77
      liked
      2021-05-12
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    • ccwee
      ??
      2021-05-12
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