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Commerce Department Establishes “Early Alert” System for Semiconductor Supply Chains

  • Commerce Department establishes early alert system to proactively address microelectronics and semiconductor supply chain disruptions
  • Department asking businesses and manufacturers to voluntarily submit information about disruptions
  • Semiconductor shortages have presented a major problem for several companies as production has not kept up with industry demand

Summary by Dirk Langeveld

The Commerce Department is asking businesses and manufacturers to voluntarily share information on microelectronics and semiconductor disruptions as part of a new “early alert” system to address supply chain problems related to the COVID-19 pandemic.

Chip shortages have presented a major challenge for numerous companies, as the production of these components has not been keeping up with industry demand. Semiconductors were one of the key items identified in the Biden administration’s assessment of American supply chain challenges.

The Commerce Department announced that the Microelectronics Early Alert System, which will be administered by its International Trade Administration, will help coordinate federal resources to address semiconductor shortages. The goal is to use data to assess disruptions, engage with foreign governments where appropriate, and work to safely reopen microelectronics and semiconductor facilities.

“It is crucial to strengthen our supply chains, and to do so we need to hear directly from impacted businesses when they are experiencing a COVID-related semiconductor supply chain disruption,” said U.S. Secretary of Commerce Gina M. Raimondo. “We encourage companies anywhere along the semiconductor supply chain to use this tool and request they provide as much detail as possible so we can help minimize disruptions.”

Companies can send information to Businesses also have the option of marking any information as confidential to prevent its disclosure.

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