Global computer chip shortage hits automotive industry amid higher demand

A global shortage of computer chips, another consequence of the Covid-19 pandemic that is affecting carmakers, has in some cases forced automotive producers to close assembly lines, Fastmarkets understands.

In the automotive manufacturing sector, silicon-based computer chips - semiconductors - have become increasingly important due to their use in safety-related electronics systems, video displays and touchscreens for in-car navigation and entertainment.
A lack of these components, therefore, could create disruption for the global vehicle production supply chain – and it already has.
On Monday January 18, United States-based carmaker Ford said that it intended to idle its factory in Saarlouis, Germany, for a month from that date because of a chip shortage and weak demand. This came after the company closed one of its plants in the US state of Kentucky on January 11.
Germany’s Volkswagen said it would make 100,000 fewer cars in the first quarter of 2020 due to the shortage of computer chips.

Toyota of Japan intended to cut production of its Tundra pickup truck due to the global shortage of semiconductors, and compatriot Honda was likely...

Published

Cristina Belda

January 26, 2021

20:35 GMT

London