The CHIPS Act and Retail

The domestic shortage of semiconductor chips has an impact spreading far and wide, from manufacturing to a range of products, of course hitting many aspects of retail and ecommerce. It’s not just consumer electronics, cars and smart appliances; chips are in many other things and the shortage causes disruption in the production of goods. For starters, it affects forecasting and inventory for retail.

The CHIPS act, which passed Congress in late July, sets aside $52 billion in subsidies and tax credits to boost domestic production and R&D, with the intent of reducing our dependence on China’s semiconductor dominance. In our latest MCM CommerceChat podcast, Spencer Shute, Senior Consultant at Proxima, helps us understand the effects of the shortage on retail and the importance of the CHIPS act.