Costly microchip shortage hitting auto sector hard: What to know
Maurice Tsai/Bloomberg
A silicon wafer made by Taiwan Semiconductor Manufacturing Co. at the company s headquarters in Hsinchu, Taiwan.
A microchip shortage that has idled several automaker plants around the globe General Motors hit pause on production in February at three plants that are expected to remain shuttered until at least mid-March and shifting auto supplier production is being blamed on a spending glut on consumer electronics like computers and speakers during the pandemic.
Personal computer sales were up 4.8 percent to 275 million units in 2020, according to data from market research firm Gartner. Last year was the largest bump in PC sales in a decade. In fact, 2020 was the largest year on record for consumer electronics at $442 billion, according to the Consumer Technology Association, known for its popular annual CES conference in Las Vegas.
Chip shortage to keep plaguing automakers in coming months Sorry, but your browser needs Javascript to use this site. If you re not sure how to activate it, please refer to this site: https://www.enable-javascript.com/
Global chip supply shortages are forcing Toyota Motor Corp. and other carmakers to cut back on production at factories around the world. | KYODO
Kyodo Feb 8, 2021
Automakers around the world will likely be forced to continue production cutbacks in the coming months until a global semiconductor supply shortage can be resolved, industry experts say.
Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. have said they partially halted production at factories around the world due to the chip shortage just as they began recovering from pandemic-forced plant shutdowns.
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This time, it s due to a lack of semiconductors.
It s not just the US that s seen a surge of novel coronavirus cases in recent months; numerous countries around the world are all experiencing the same worrying trend as the northern hemisphere experiences its winter season. At the same time, demand for products such as consumer electronics has started to bounce back, creating a shortage of semiconductor chips that s roiling the automotive industry.
Reuters reports that Fiat Chrysler, Ford, and Toyota have all announced temporary North American plant closures or production slowdowns due to the shortage of chips, prioritizing lower-profit or lower-volume vehicles in an effort to spare their most money-making vehicle lines.