The semiconductor shortage, which was brought on by increased demand and a disruption to steady supply chains brought on by the COVID-19 pandemic, have slowed automobile manufacturing, with both General Motors and Ford announcing recently they will temporarily shut down several factories in North America as a result. Intel CEO Pat Gelsinger was recently quoted in The Washington Post as saying the company plans to boost production of automotive chips within 6-9 months, but it could take a couple of years to fully address the shortage. To ensure more domestic chip supply in the long term, the Biden administration is proposing spending $50 billion to subsidize semiconductor manufacturing facilities. A Farm Equipment poll asked “Are you concerned the semiconductor shortage that’s impacting auto manufacturers could impact ag equipment production and cause additional inventory challenges?” Overwhelmingly, respondents said yes (88.1%) they were concerned the shortage could cause additional inventory challenges. Just 2.4% of respondents said no and another 9.5% were unsure.
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