Inventories of critical chips at U.S. manufacturers and other companies that use semiconductors fell to less than five days, the Commerce Department said on Tuesday, citing the results of a new survey.

In 2019, companies typically maintain 40-day inventories of critical chips, according to the U.S. Department of Commerce. And the latest report says the company now has less than five days of inventory for the same chips (defined as the 160 products the company considers the most challenging).

Commerce Secretary Gina Raimondo said the findings showed that Congress urgently needs to approve the American Innovation and Competition Act, which includes $52 billion to boost domestic chip production.

"We're not out of the woods yet because it's related to the supply of semiconductors," Raimondo said. "The semiconductor supply chain is very fragile and it's going to stay that way until we can increase chip production."

Since September, the Commerce Department has been seeking detailed industry data from major companies in the semiconductor supply chain.

The survey found that the current demand for chips is 20% higher than in 2019, and the company expects orders to exceed supply in the next six months.

The median chip inventory has fallen sharply from 40 days in 2019 to less than 5 days in 2021, and the U.S. Commerce Department warned that "if the novel coronavirus epidemic, natural disasters or political instability hit foreign semiconductor facilities, even for a few weeks, U.S. manufacturing plants could also come to a standstill.”

In addition, the survey found that the automotive and medical device industries are bearing the brunt of the global semiconductor shortage. Used-vehicle prices surged last year as chip shortages disrupted auto production, driving overall U.S. consumer prices up 7% in 2021.