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The Semiconductor Chip Shortage Seems to Be Easing

Gina Raimondo, US commerce secretary, as President Joe Biden speaks during a virtual meeting on the Chips Act in the Eisenhower Executive Office Building in Washington on July 25

Gina Raimondo, US commerce secretary, as President Joe Biden speaks during a virtual meeting on the Chips Act in the Eisenhower Executive Office Building in Washington on July 25

Photographer: Jemal Countess/UPI
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It’s ironic that just as US lawmakers finally broke an impasse of more than a year on a bill providing unprecedented subsidies for making semiconductors, evidence is mounting that demand for chips is softening.

Part of the rationale for that legislation was to address a severe shortage of chips globally that had contributed powerfully to the initial wave of inflation last year. The automobile industry in particular found itself running out of semiconductors vital for the modern vehicle. That crimped supply, sending prices of both new and—in a knock-on effect—used cars soaring.