Several automakers are facing semiconductor shortages due to the Covid-19 pandemic. The demand for vehicles has exceeded supply and Some Ford and Nissan factories are idling because of the lack of parts. According to Wall Street JournalIt appears that the auto industry as a whole is struggling with a semiconductor shortage.
Semiconductor shortages announced
This is a situation that experts in the automotive market feared … The industry is facing semiconductor shortages due to the closure of Chinese factories during the Covid-19 pandemic. These have repeated closures delayed flea production. The manufacturers of smartphones were initially affected, this was particularly the case with Apple with the iPhone 12, today it is the turn of the automobile manufacturers to face the shortage of chips on the market.
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The United States had anticipated this situation. During the summer, the country said it wanted to improve its chip production capacity in order to remain competitive with China. In 2021, a large proportion of the semiconductors used by the USA will still come from Asia and especially from China. This situation has urged a group of US lawmakers to draft a new bill which plans to support and financially support the semiconductor industry. Aid worth $ 22.8 billion to be released.
Most automakers are in the same situation
The situation today is that Ford has to leave its Kentucky plant idle for a week. The automaker’s assembly plant in Louisville produces the Ford Escape SUV and the Lincoln Corsair. Today 3,900 people work in this factory. The shutdown was expected by the American automaker, but Ford executives hadn’t thought a semiconductor shortage would occur this early in the year.
Nissan is in that situation too. The Japanese automaker has announced that it will cease production at one of its plants in Japan. According to a Nissan spokesman, the manufacture of the Nissan Note is will pause for a few days. Volkswagen, Fiat Chrysler and Toyota have also reported problems with their semiconductor supply.
The reality today is that new vehicles use far more semiconductors than in the past. Technologies such as on-board computers, driver assistance or even a Bluetooth connection require the implementation of chips. At the beginning of 2021 Car manufacturers are therefore dependent on factories, partly closed due to the Covid-19 pandemic. A situation that also urges the European Union to invest heavily in the semiconductor sector.