Bloomberg: The auto industry chip shortage isn’t over yet

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Major Japanese semiconductor chip supplier Rohm has warned that chip shortages will continue next year, in a blow to automakers’ hopes that the industry’s recent shortfall was just a temporary setback, raising fears that the impact will creep into car prices.

The company explained, as reported by the American “Bloomberg” website, in a report, that the continuation of this deficit in supplying chips The need for the auto industry is due to the fact that its supply chains are embroiled in serious bottlenecks.

Bloomberg reported that production of the chip maker, whose clients include Toyota Motor, Ford Motor and Honda Motor, has been hampered by severe shortages of key materials as well as complete production lines.

During an interview with the American site, CEO of Isao Matsumoto said that production lines continue to operate at 100% to meet the backlog of demands from car customers; But “overwhelming” demands and big investments to increase production will not yield quick returns.

He also noted the general supply chain problems for the chip maker, in addition to the fact that the continuing epidemic of “Covid-19” and its variants are complicating matters further.

Customers who offer to pay more to get their chips faster doesn’t work because there simply isn’t enough of them anyway, Matsumoto added, noting that the manufacturing materials that cause the most disruption are lead frames, which create the metallic structure of the chip inside a semiconductor.

According to a Bloomberg report, makers continue to the cars Across the board dealing with the massive consequences of ongoing shortages; General Motors, Ford, Toyota and others have announced a halt to manufacturing at their production facilities. Toyota, in particular, has cut 40% of its global production as it braces for tougher times with fewer chips. At the same time, it may start to hit car sales as inventory grows larger, while dealerships and automakers reap profits from customers willing to pay higher for new cars.





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