Lack of chips caused the car industry to “suffer” because of delays in the production line

The car industry is expected to be hit by a shortage of chips in Q1 / 2021. According to the analysis, there will be nearly 1 million vehicles in production affected by the shortage of chips.

Reuters citing analysis from data company IHS Markit pointed out, recent supply problems related to semiconductors is the leading cause affecting the production of cars.

As of February 3, 2021, the company estimated this problem could affect more than 672,000 vehicles by the end of March 30, 2021. However, analysts believe that most of the vehicle volume can be recovered for the remainder of 2021.

Currently, the global chip supply is in a serious shortage. The big chipmakers are under stress because their production lines are also running at full capacity. Although the chip shortage is not expected to last until the end of the year, many industries may suffer in the first quarter.

As can be seen, the soaring demand for chips led to the supply gap and the decline in car production.

The shortage of chips has forced some carmakers to consider lowering production standards amid strong global demand for cars.

The Chinese government has even lobbied domestic chipmakers to increase the supply of chips to domestic carmakers. This is a sign that the problem has affected the car industry on a global scale.

Refer to Reuters