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Chip shortage will reduce global car production by 670,000 units in the first quarter

Engineering

The rapid recovery of the auto industry after the coronavirus lockdowns is being held back by microprocessor shortages.

Chip shortage will reduce global car production by 670,000 units in the first quarter

Research firm IHS Markit predicts the chip shortage will cut global production by more than 670,000 vehicles in the first quarter. Fitch Solutions predicts that some form of a shortage of chips for cars may persist until early 2023, while other companies, such as Germany's Infineon, one of the largest manufacturers of such chips in the world, predict that the situation will normalize by the end of this year. </P >

The chip shortage is due to a number of reasons, including the growth in demand for microprocessors in the past year in the context of the spread of remote work and the increase in demand for computers and laptops. In addition, the automotive industry, and hence the demand for chips in it, began to recover faster than expected from last year's downturn. At the same time, the chips used in cars - and more and more of them are needed with the development of modern technologies - are often more complex and specialized than chips for smartphones and other similar gadgets.

In addition, the shortage of microprocessors in the United States is caused by measures taken by former US President Donald Trump against Chinese technology companies. At the same time, against the background of restrictions on supplies from China, local manufacturers were unable to cover the growing needs of car manufacturers.

Previously, Volkswagen, Opel, Honda, Toyota, Fiat Chrysler and Nissan have already reported that the shortage of chips will affect their car production. Ford announced a 20% cut in car production in the first quarter. General Motors also announced plans for a week to suspend production of cars at three plants in the United States due to a shortage of chips, production will be suspended from Monday.

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