Several automakers are facing semiconductor shortages due to the Covid-19 pandemic. Vehicle demand has exceeded supply and some Ford and Nissan factories are idling due to missing parts. According to the Wall Street Journal, the auto industry as a whole appears to be 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 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 be confronted with the lack 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 led a group of US legislators to propose a new bill to support and financially support the semiconductor industry. US $ 22.8 billion in aid needs 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 had been expected by the American automaker, but Ford executives hadn’t imagined there would be a semiconductor shortage earlier this 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 production of the Nissan Note will be suspended 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, automobile manufacturers will therefore have to rely on factories that are partially closed due to the Covid-19 pandemic. A situation that also urges the European Union to invest heavily in the semiconductor sector.