Ford, BMW and Honda cut production due to global chip crisis

Despite the Best efforts of chip makers, the production crisis caused by a global semiconductor shortage is worsening. Demand exceeded supply following a pandemic-induced shopping spree that saw the public take everything from game consoles to TVs during lockdowns. As a result, many technology products that rely on these chips – such as the PS5, Xbox Series X / S and the iPhone 12 – were quickly sold out, experienced delays, or were subject to extended shipping times. The situation is now deteriorating for one of the most affected sectors: the automobile. Bloomberg reports that automakers on three continents are currently warning of production cuts.

Within 12 hours, Ford in the United States, the chip shortage could halve production in the current financial quarter; Japan’s Honda said it would shut down production at three domestic factories for five to six days next month; and BMW has warned of delays at its facilities in Germany and England.

What started as a failure caused by plant closures during the pandemic has turned into widespread disruption due to high demand for chips in other industries. Vehicles use semiconductors to power their advanced driver assistance systems, including anti-lock braking and park assist. most technology is hurry in cars, the more chips they will inevitably need.

The crisis has also resulted in longer waiting times for car buyers. According to The New York TimesPorsche reportedly warned U.S. dealers that customers could have to wait an additional 12 weeks to get their cars.

The news is hardly better for the tech industry. Coming out of gigantic financial results, at once Apple and Samsung admitted that the chip shortage will have a significant impact in the short term. Despite their push make After internal processors, announcements highlight Apple and Samsung addiction on a vast supply network.

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