Microprocessors: Shortages

Department for Digital, Culture, Media and Sport written question – answered on 11th February 2022.

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Photo of The Marquess of Lothian The Marquess of Lothian Conservative

To ask Her Majesty's Government whether they have made any assessment of the potential (1) economic, and (2) inflationary, impact on the UK of any global shortage of computer chips; and what steps they are taking to mitigate any impact.

Photo of Lord Parkinson of Whitley Bay Lord Parkinson of Whitley Bay Lord in Waiting (HM Household) (Whip), The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport

We appreciate the difficulties that businesses are facing around the world as a result of the current chip shortage. The global nature of this market and a confluence of unexpected events, including the unprecedented pandemic, shifts in demand, and the impact of natural disasters, have had widespread ramifications internationally, including for major chip manufacturing countries.

Working closely with industry, experts, and international partners, the Government is looking at options that increase diversification of supply, enhance the resilience of procurement supply chains, and technical options to accelerate diversification away from silicon chips. This includes working with key allies to address risks stemming from the global nature of the industry.

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