The semiconductor chip scarcity is everywhere in the media in current days, and the headlines will not be precisely reassuring.
- The New York Occasions writes: “The World Chip Scarcity Hobbles the Auto Trade.”
- Barron’s declares: “The Chip Scarcity Is Getting Worse on the Worst Potential Time.”
- The Guardian states: “World Scarcity in Pc Chips ‘Reaches Disaster Level.’”
Triggered by traits associated to the COVID-19 pandemic, the semiconductor chip scarcity is a fancy downside that won’t be simply or shortly resolved, and it could have critical long-term repercussions for the worldwide automotive business.
“Lead occasions for automotive semiconductor chips are actually stretching out 6 to 12 months and, consequently, vehicle producers are briefly closing vegetation or in any other case lowering manufacturing,” in accordance with Teresa Hayes, Vice President of Publishing at The Freedonia Group, a premier industrial analysis firm and division of MarketResearch.com. “Just about each world motorcar producer has been impacted — with Ford seeing a few of the greatest losses.”
Within the video beneath, Hayes presents a fast tackle how lengthy this chip scarcity will final and why that is such a priority for U.S. automakers.
Need to know extra? In a newly launched white paper, Hayes goes past information headlines to offer a deeper dive into this subject. “Chip Shortage May Change How Cars Are Produced” explains what brought on the semiconductor chip shortages, the fragility of present provide chains, and plans for brand spanking new US semiconductor manufacturing. It additionally discusses how the automotive business could adapt and shares Freedonia’s newest automobile manufacturing forecasts.
The white paper attracts on experience from Freedonia’s Chief Economist Thomas Bowne and Operations Manger Matthew Function of Freedonia Focus Stories to carry you a number of views from long-time business specialists.
Obtain the free white paper in the present day to get the newest insights on this world downside.