The chip shortage is expected to hit the auto industry in the first quarter of this year. A new report showed that the shortage could affect production of nearly 1 million vehicles.
According to the report Reuters, well-known information firm IHS Markit believes that the recent semiconductor supply problem could affect car production. The firm estimates that as of February 3, 2021, the problem could affect over 672 vehicles by March 000, 30. Although the report also indicates that most of the volume could be recovered in the remainder of 2021.
For those who do not know, at the moment the global supply of microcircuits is in short supply. Major chip makers are currently overwhelmed with production lines running at full capacity. While the deficit is not expected to last an entire year, various industries are likely to suffer in the first quarter of this year. We previously reported on a well-known hardware manufacturer, vice president of AMSL, claiming that the surge in chip demand has led to supply disruptions and a decline in vehicle production.
For those who don't know, a shortage of microcircuits has forced several automakers to rethink their manufacturing standards even in the face of growing demand for cars around the world. Likewise, the Chinese government has even lobbied local chipmakers to also increase supplies for China-based carmakers to boost car production in the region. This is indicative of a problem that has affected the industry globally.
