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The semiconductor industry has worked diligently to increase production to address high demand, shipping more semiconductors on a monthly basis than ever before by the middle of 2021, but most industry analysts expect the shortage to linger into 2022. Semiconductor manufacturing processes also use fluorinated heat transfer fluids and nitrous. Semiconductor manufacturing processes use high GWP fluorinated compounds including perfluorocarbons (e.g., CF 4, C 2 F 6, C 3 F 8 and c-C 4 F 8), hydrofluorocarbons (CHF 3, CH 3 F and CH 2 F 2), nitrogen trifluoride (NF 3) and sulfur hexafluoride (SF 6).

In this report, we do not identify which options are being implemented by agencies or are currently being considered in pending legislation. This report summarizes selected experts’ views on policy options that could reduce semiconductor supply chain risks and help mitigate future semiconductor shortages in the United States. The global chip shortage is set to drag on till 2022 - but the situation could improve from mid-year onwards as more supplies become available, a top semiconductor analyst at JPMorgan told CNBC.

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