Nissan Japan "US Tennessee Plant to Halt Production for 2 Weeks Due to Semiconductor Shortage"

Suspension of Operations from the 16th to the 30th
Impact of Shutdown at Malaysian Automotive Semiconductor Factory

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Japanese automaker Nissan Motor announced plans to halt operations at its vehicle assembly plant in Tennessee, USA, for two weeks due to a shortage of automotive semiconductors. As semiconductor supply plants located in Malaysia have been repeatedly shut down amid the spread of the COVID-19 Delta variant, concerns are rising that production at other automakers will also be affected.

According to the Nihon Keizai Shimbun (Nikkei) on the 12th, Nissan Motor stated in a press release that it will suspend operations at its Tennessee assembly plant from the 16th to the 30th for two weeks. Nissan explained, "Due to delays in the supply of automotive semiconductors caused by the spread of COVID-19 in Malaysia, we will halt operations at the Tennessee plant for two weeks," adding, "The plants in Mississippi and Mexico will continue operations."

It is known that six vehicle models, including the compact SUV Rogue, are being produced at Nissan's Tennessee assembly plant. Nissan plans to review the semiconductor supply situation after the 30th and decide whether to resume operations. Nikkei reported that the production cut is expected to delay the manufacturing of tens of thousands of vehicles.

The shortage of automotive semiconductors, which had been an issue since the beginning of the year, showed signs of easing after the first half of this year. However, the supply situation has worsened again as Malaysia, where many automotive semiconductor plants are concentrated, has imposed widespread lockdowns due to the spread of the Delta variant. Malaysia is known to host production plants of over 50 semiconductor companies, including Intel and Renesas.

Phil Amsrud, senior analyst at IHS Markit’s Motomotive, said in an interview with MarketWatch, "The chip shortage was just beginning to ease, but the Delta variant pandemic is once again severely disrupting the semiconductor supply chain," adding, "Global automakers will suffer significant damage as they resume plant shutdowns and other measures."

This content was produced with the assistance of AI translation services.