Automakers cut production, lose sales amidst semiconductor shortage

The ongoing semiconductor shortage globally has affected automakers for a year and the situation seems to be worsening. As the production lines for chips halt in Southeast Asia due to new infections of the coronavirus, more car companies and automakers stop their production. The delay in chip production is created by a new wave of Delta-virus cases in Vietnam, the Philippines and Malaysia. As the factories that cut and package semiconductors have halted, the demand for these has risen. The White House held a summit on Thursday with semiconductor manufacturers and buyers to get more clarity on the situation and the crisis. Attendees of the summit included senior executives from Intel, Ford, Apple, General Motors, Microsoft, Samsung and a dozen other companies. 

The shortage has hit a handful of industries and the frustration during the shortage is rising. Automakers want chip manufacturers to increase production and smartphone companies do not want their semiconductors diverted to automakers. However, the chip manufacturers say that the automakers themselves canceled orders after the rise of the covid crisis. The companies are also impatient for Congress to approve a $52 billion federal subsidy to boost domestic semiconductor manufacturing. 

Source: The Washington Post