Chip shortage hits global manufacturing; electronics cos affected
A global semiconductor chip shortage has caused a major delay in manufacturing activity, with automakers cutting down on production and electronic device makers struggling to keep up with a pandemic-led surge in demand for phones, TVs and gaming consoles.
The scarcity has prompted U.S. President Joe Biden to sign an executive order to address the issue, after he pledged to seek $37 billion in funding for legislation to supercharge chip manufacturing in the United States. Below is a list of major corporations that have been at the receiving end of the crisis.
Company Comments General Motors Co Both General Motors and Ford said they will cut more vehicle production due to a semiconductor chip shortage that has roiled the global automotive industry. Earlier, GM had said that due to the global semiconductor chip shortage, it is building certain 2021 light-duty full-size pickup trucks without a fuel management module, hurting those vehicles’ fuel economy performance. GM had also extended production cuts at three North American plants, adding a fourth to the list due to chip shortage.
Said shortage could shave up to $2 bln from 2021 profit Ford Motor Co Has said it will, for now, assemble its flagship, highly profitable F-150 pickup trucks and Edge SUVs in North America without certain parts and idle two assembly plants due to the global semiconductor chip shortage. Earlier, it said shortage is hitting production of F-150 pickup trucks, and it could lose 10% to 20% of planned Q1 vehicle production, with adj. earnings falling by $1 bln to $2.5 bln.
Apple Inc’s production of some of Apple MacBooks and iPads has been postponed due to a global component shortage, the Nikkei reported.
Volkswagen AG Truckmaker Scania, part of Volkswagen AG’s commercial vehicle arm Traton SE , might have to stop production as a shortage of semi-conductors threatens deliveries, Swedish media has quoted it as saying. Volkswagen was the first carmaker to warn of a chip supply crunch. It said in February that chip shortage will impact production at some of its plants. VW’s production sites in Wolfsburg and Kassel are affected. Renault SA Has estimated the chip shortage could reduce its production by about 100,000 vehicles this year.
Visteon Corp The auto parts supplier has said uncertainty around the semiconductor shortages will lead to some plant closures in the first half of 2021, before it stabilizes during the second half. Honda Motor Co Has cut North America production citing supply chain issues that have wreaked havoc with the auto industry. Has cut its 2021 sales target by 100,000 vehicles, or 2.2% to 4.5 mln cars due to the chip shortage.
Nissan Motor Co Has said that the chip shortage has led it to cut production at its plants in Smyrna, Tennessee, Canton, Mississippi, and Aguascalientes, Mexico. It did not disclose how much volume would be lost due to the action. Earlier had lowered its target by 150,000 vehicles, or 3.6%, to 4.015 mln units.
Tesla Inc CEO Elon Musk said Tesla’s Fremont, California plant shut down for two days in February due to “parts shortages”. Stellantis NV Production at Stellantis’ Eisenach factory in Germany and its Zaragoza plant in Spain were impacted due to the shortage. Union sources told Reuters in February that Stellantis planned to slow production at its Melfi plant in Italy and furlough 7,000 workers.
Sony Corp CFO Hiroki Totoki said it is difficult for the company to increase production of the PS5 amid the shortage of semiconductors.
Zhejiang Geely Holding Group Co Volvo Cars, which is owned by China’s Geely Ltd Holding, has said will temporarily stop or adjust production in China and the United States for parts of March due to a global shortage of semiconductor chips. Volvo AB Volvo
AB said it expects shortage of semiconductors to have negative impact on earnings and cash flow and warned of a substantial hit on production in the second quarter.
Acer Inc Andrew Hou, Acer’s president for Pan-Asia Pacific Operations, said he expected better supplies in the second quarter compared with the first quarter of this year, and that the situation in the second half will be better than the second quarter.
Toyota Motor Corp Toyota’s Czech unit Toyota Motor Manufacturing Czech Republic said it will halt production at its car plant in Kolin, east of Prague, for 14 days from March 22 due to a shortage of semiconductors, news agency CTK reported. Reuters
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