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Honda Limits Output in Two Plants Until Early March Over Semiconductor Shortage

When the tech boom hit, humans marveled at the ingenuity. Decades later, the tech industry is fighting an invincible enemy in the form of a semiconductor shortage. Some of the major players in the automotive sector, including Honda, are suffering the brunt of it all. It was the first automaker to shut down in the U.S. in 2020 due to the global health crisis. It also shut down its Swindon plant in the UK  and is now limiting output in two plants until March.
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Honda wasn’t the only company facing setbacks due to the and microchip shortage. In 2021, automotive leaders like Volkswagen and tech giants like Samsung experienced disruption over the elusive semiconductors. The effect led to supply chain issues that dented production, leading to delivery delays and significant profit dips.

Honda stated that it will limit output on two domestic manufacturing sites, operating at 90% until next month due to the industry-wide chip shortage, Reuters reported.

The Japanese automaker isnt the only automaker cutting output. Ford also suspended the production at some of its North American plants, leaving some of its major assembly lines, including the F-150 and Mustang, idle.

To avert the crisis, Hyundai are considering using home appliance chips on non-vital car parts such as the lights.

According to the statement, Honda will cut down  production by 10% on its Saitama factory and two production lines at its Suzuka plant until March. The automaker said the disruptions are due to  initiated lockdowns and chip shortages.

Industry insiders are still uncertain about how soon the crisis will last. According to AMD CEO Lisa Su, the chip shortage might not end quickly and might become less severe in the second half of this year.

Similarly, Nvidia CEO Jensen Huang echoed Su’s sentiments telling investors that the supply chain issue could continue deep into 2022. Nvidia has also reduced the production of its popular graphics cards for the last two years, forcing rival prices to skyrocket.

 
 
 
 
 

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