Semiconductor shortage reduces car production
Semiconductor shortage reduces car production

As the global semiconductor shortage worsened, major automakers have relapsed from factory closures due to the pandemic, forcing them to halt or slow car production.

Officials from Volkswagen, Ford, Fiat Chrysler, Toyota and Nissan said they were affected by the shortage and would have to delay production of some models to operate other plants.

Toyota said: We are assessing semiconductor supply restrictions and formulating countermeasures to minimize the impact on production.

If chip shortages persist, production cuts could reduce inventory levels of the cars, trucks and SUVs sold in the United States and other markets.

At this point, the industry is barely starting to make up for lost inventory. And the facility was closed last spring to stop the spread of the new Corona virus.

Toyota has been forced to slow production of its Tundra pickup trucks at a plant in San Antonio, Texas.

Ford decided to stop working at its assembly plant in Louisville, Kentucky, for a week that combines the Escape and Lincoln Corsair.

Fiat Chrysler has temporarily closed its car plant in Brampton, Canada and a small SUV plant in Toluca, Mexico.

Volkswagen said in December that there would be a production slowdown due to bottlenecks, while Nissan said it needed to revise production in Japan, but that has not yet happened. Huge influence in the United States.

Industry officials said that during the worst slowdown in auto sales last spring, semiconductor companies have shifted manufacturing to consumer electronics.

Global automakers have been forced to close factories to prevent the spread of the virus, but as auto makers regain their vitality, chips are running out.

In many cases, automakers have stopped slowly selling cars to bring the chips into larger markets, including pickups and SUVs.

Cars use more semiconductors than they have in the past for functions like infotainment, driver assistance, and Bluetooth connectivity.

The growing shortage of automotive chips is the latest example of how the semiconductor industry is achieving a product multiplier effect.

The problem started when off-site factories that made the chips were forced to shut down in the early stages of the outbreak.

The problem worsened last July after the Trump administration imposed sanctions on 11 Chinese companies for labor abuse.

To make matters worse, schools compete on laptops with companies requiring large numbers of employees to work from home.

The chip shortage also forced Apple to delay releasing its latest iPhones until late October and early November, more than a month before major stores usually launched their best-selling devices.

By 2025, the global market value of semiconductors is expected to reach approximately $ 129 billion, nearly three times the size of 2019.

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