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iPhone Maker Foxconn Warns the Global Chip Shortage Is Here to Stay

The global semiconductor shortage is still wreaking havoc in several industries, including the automotive business, where more and more carmakers are forced to temporarily suspend their operations simply because they don’t have any chips to install on their models.
The global chip shortage likely to be over in approximately one year 1 photo
And while several giants, including Intel and Samsung, have already announced plans to step into the chip manufacturing business for the automotive market, Foxconn, the company known mostly for making Apple’s iPhone, warns that the chip shortage is here to stay.

Foxconn Chairman Young Liu says he expects the semiconductor struggle to last for at least one more year, as he believes that foundries still wouldn’t be able to align their output with the demand until the second quarter of 2022.

What’s worse is that the chip crisis is expected to be even more severe in the second quarter of this year after several industries have already been struggling with a massive lack of chips in the first months of 2021. For example, several big carmakers turned to temporary halts of their production lines, including Daimler, Ford, and Hyundai.

Earlier this month, Ford turned to more aggressive solutions to deal with the lack of chips for the 2021 F-150, announcing another shift reduction at the Dearborn Truck Plant. In addition, the Kentucky facility has also suspended operations, with models like the Escape and Corsair said to be impacted. The production of the 2021 Ford Bronco has also been affected by the lack of chips.

Meanwhile, research estimates that the manufacturing of some 4 million cars would be impacted in one way or another by this struggle to find enough chips to install on vehicles.

The lost revenues of the auto sector could reach $61 billion, with the numbers even expected to grow if foundries across the world fail to fill all their orders as soon as possible (which is very unlikely to happen given the health crisis is far from over anyway).

 
 
 
 
 

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