Global Vehicle Production Disrupted by Semiconductor Shortage, 7.1 Million Units Affected This Year

Recovery Only in the Second Half of Next Year
Semiconductor Supply Issues Worsen Due to COVID-19 Spread in Southeast Asia
Toyota Cuts September Production by 40%
Ford Reduces F-150 Pickup Production

[Asia Economy New York=Correspondent Baek Jong-min] It is predicted that global automobile production will decrease by up to 7.1 million units this year due to the semiconductor shortage. The semiconductor supply disruption is expected to remain a concern for the automotive industry until next year.

Research firm IHS Markit announced in a report on the 19th (local time) that the semiconductor shortage will continue until the second quarter of 2022 and is expected to ease only in the second half of next year.

IHS estimated that the reduction in vehicle production this year due to semiconductor supply disruptions will reach 6.3 to 7.1 million units. IHS expressed concern that up to 2.1 million units of vehicle production loss could occur in the third quarter alone.

U.S. President Joe Biden is holding up a wafer while discussing semiconductor supply issues.
[Image source=AP Yonhap News]

Bloomberg reported that if Toyota's announcement the day before to cut global vehicle production by 40% in September is added, the scale of vehicle supply disruptions will increase further.

Mark Pursov, an IHS analyst, explained, "The COVID-19 situation in Malaysia, where semiconductor post-processing and testing mainly take place, is making the situation more difficult."

It is analyzed that the spread of COVID-19 in the Southeast Asian region is leading to the closure of semiconductor-related factories located in the area, putting additional pressure on the supply chain.

Ford also announced the day before that semiconductor supply has become insufficient due to the worsening COVID-19 situation in Malaysia, resulting in a reduction in production of the F-150 pickup truck at its Kansas City, Missouri plant.

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