Shortages of key chips still affecting automotive industry

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Chip shortages still dog carmakers despite weaker semiconductor demand

Demand for semiconductors may be falling, but automobile manufacturers still face chip shortages and supply issues to the extent that some are halting or cutting production.that the end of chip shortages is in sight and lead times are falling, shortage of key components is still affecting some car makers. The latest is Volvo, which said this week it is temporarily closing one of its factories.

Toyota also announced just days ago that it is continuing to be hit by chip shortages at its car plants across Japan, issues that have dogged the company for much of this year, resulting in itapologizing for repeated adjustments to its production plan, and said that due to semiconductor shortages, its planned global production volume for November is expected to be approximately 800,000 units.

The result means that Mobileye's market value is about $16.7 billion, more than the $15 billion Intel paid for the company in 2017, but a fraction of the $50 billion figure that was being touted earlier this year. As a result of this change, the full-year production forecast for Toyota's fiscal 2023 is expected to be lower than the previous forecast of 9.7 million units, the company said., GM said there has been a gradual improvement in the supply chain, including semiconductors. It expects short-term disruptions to continue, but said it was taking steps to minimize these, including signing several strategic supply agreements for mature nodes where semiconductor supply is most constrained.

 

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