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EXCLUSIVE Bundesbank expects chip bottlenecks in German industry to worsen in Q2


EuropeEXCLUSIVE Bundesbank expects chip bottlenecks in German industry to worsen in Q2
Michael Nienaber
3 minute read
The Berlin skyline is seen, during the spread of coronavirus disease (COVID-19) in Berlin, Germany, April 1, 2020. REUTERS/Michele Tantussi
The chip supply bottlenecks in German industry will likely worsen in the second quarter and lead to an overall weaker recovery of Europe s largest economy this year, the Bundesbank s chief economist told Reuters on Friday.
Shortages of semiconductors and other industrial components have led to production cuts in manufacturing, forcing executives and policymakers to rethink supply lines and try to reduce reliance on a handful of Asian and U.S. suppliers. read more ....

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Semiconductor woes hit Apple and even Samsung, EU responds with chip pact scheme


Samsung and Apple both expect to take a sales hit this quarter because of the ongoing global chip shortage as the crisis continues to plague the automobile industry, with BMW-owned Mini and Jaguar Land Rover the latest companies to pause production.
A perfect storm of Covid-19, severe weather, factory fires and soaring demand for silicon has resulted in an unprecedented shortage affecting multiple sectors.
As both a manufacturer and consumer of semiconductors, Samsung finds itself in the unique position of rising chip profits from silicon-hungry customers but slumping sales of its own mobile devices as it struggles to stretch its supply across its own devices and orders to its own fabrication plants. ....

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Germany's Bundesbank expects chip bottlenecks in domestic industry to worsen in Q2


Germany s Bundesbank expects chip bottlenecks in domestic industry to worsen in Q2
Automakers have been hit hard by chip shortages caused by factory closures during the COVID-19 pandemic
Reuters
VW has said it expects a worsening production hit from the chip shortage.
BERLIN The chip supply bottlenecks in German industry will likely worsen in the second quarter and lead to an overall weaker recovery of Europe s largest economy this year, Jens Ulbrich, the Bundesbank s chief economist told Reuters on Friday.
Shortages of semiconductors and other industrial components have led to production cuts in manufacturing, forcing executives and policymakers to rethink supply lines and try to reduce reliance on a handful of Asian and U.S. suppliers. ....

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Analysis: Locked-down Europe: cash to spend, nowhere to spend it


EuropeAnalysis: Locked-down Europe: cash to spend, nowhere to spend it
Michael NienaberLeigh ThomasLeigh Thomas
1/2
Picture shows the abandoned Kennedy Square due to the coronavirus disease (COVID-19) pandemic lockdown in downtown Essen, Germany, March 11, 2021. REUTERS/Wolfgang Rattay
Read More
Only a few weeks ago, many European countries were hoping their more affluent citizens would by now have started spending nest eggs built up during the pandemic to trigger a consumer-led recovery in the region s economy.
But with the spread of COVID-19 prompting new lockdowns across the continent and vaccine campaigns behind schedule, it is still unclear when - or indeed if - record levels of private savings will finally convert into a much-needed spending boom. ....

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