New car prices are increasing at a faster pace than ever before. And, according to Senator Elizabeth Warren, the lack of competition in the semiconductor industry is at least partly to blame. The world is experiencing a massive computer shortage, mainly due to the Covid outbreak and skyrocket demand. Due to malnutrition, Ford, General Motors, and other automation companies have had to reduce production. Car dealers are not able to meet the demand for new cars, leading to a wave of new and used cars.
Warren, in a new letter received by CNN, argues that malnutrition, along with its consequences, is the first example of how real people can be harmed when few companies become too big in their positions. The Massachusetts Democrat points out that only five companies control 54% of the world’s semiconductor production, giving the largest players “huge market power.”
“This market focus has reduced competition, allowing big companies to deliver big returns to shareholders,” Warren wrote in a letter to Commerce Secretary Gina Raimondo on Thursday. “But it has hurt consumers by giving these high-tech companies to increase costs and negligence at key capabilities, which in turn reduces productivity and product quality.
The Semiconductor Center team responded in a statement to CNN by saying that the trade group agreed with Warren that the United States needed to encourage incineration, but had backtracked on other areas of the Senate.
“Some of the other recommendations of the Senate are valid throughout the mark, ”said John Neuffer, CEO of the business group. “The semiconductor industry is one of the strongest competition in the world, innovative, and influential sectors of the economy, transforming all segments of the economy and greatly improving our way of life. ”
The press release from Warren is a new example of developments that argue the corporate greed is increasing the historical levels of inflation.
Last week, Warren hit Hertz for binging on redemption purchases instead of investing in a new offer that could cause car rental rates to rise. Similarly, White House analysts published a blog post last week that said “leading meat hunters” “used their market power to crush big and big profit margins for themselves,” which contribute to the recent increase in meat prices.
To make its mark on computers, Warren specializes in Taiwan Semiconductor Manufacturing Co., a supplier to Apple, Nvidia and other technology companies, as one of the world’s most powerful companies. He also said ASML, a Dutch company that trades on the Nasdaq, is the only company that manufactures the equipment needed for cutting-edge chips, and cannot keep up with demand.
“So while primary semiconductor companies such as TSMC and ASML post big profits and profit shareholders,” Warren wrote, “customers are hurt by shortages and high prices.” No company has responded to requests for comment from CNN. The Semiconductor Company team notes that the company has been making new investments rapidly over the years, and that the evolution requires significant investment.
“Modern semiconductors are magical, containing tens of billions of transistors on a quarterly scale,” the business group said in a statement. Unparalleled by any other company, the semiconductor company has delivered an incredible amount to customers. Fifty years ago, transistors were a billion times more than they are today. ”