It’s Covid’s perfect storm.
A reduced workforce in China at semiconductor plants during the first year of the pandemic, disruptions in supply chains for manufacturers dependent on parts from other countries, and a sharp increase in the use of and purchase of products using chips by people quarantining for months on end across the globe has led to a drastic shortage of chips.
The auto industry is feeling the pinch.
The White House is pledging to work to fight the shortage, but it’s not only a problem in the U.S., where General Motors continues to close Michigan plants due to the absence. In a call with investors the company reports an expected loss of $2 billion this year. Overall, the industry could be looking at a $60 billion loss globally, Mercedes Benz, BMW, and Volkswagen among the first to cut back. The Toyota Tundra plant in San Antonio has had to slow down.
Auto isn’t the only industry suffering. Apple, Qualcomm and Sony are also hurting.
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