World’s major automakers are suspending operations in Asia, Europe, and North America on persistent shortage of semiconductors, according to Bloomberg. The shortages were worsened by fire at a key chip-producing plant run by Renesas Electronics Corp. over the weekend.
Companies affected by chip shortages include Ford, Toyota Motors, Volkswagen AG, and Honda Motor Co.
Initially, chip shortages occurred as a result of rising demand for cars that coincided with a boom in the market for devices such as laptops, webcams, and gaming systems.
Winter storms in the U.S also hurt semiconductor supplies
Analysts estimated in January that the chip shortage would reduce global vehicle production by 1.5 million units, with Japan accounting for about a third of the total.
The Renesas fire is expected to halt production line for 300mm wafers for at least a month
Most major automobile stocks are currently declining. F: NYSE is up 1.06% on premarket, 7203: TYO is down 2.22%, VOW3 is down 0.64%, 7267: TYO is down 1.61%
