Photo: General Motors
The auto industry expected the chip crisis to ease off in the second half of the year, but the closer we get to this highly anticipated moment, the clearer it becomes that this is less and less likely to happen.
The demand for car chips continues to be extremely high, and chipmakers themselves confirm that they’re already running at full capacity at all plants.
NXP Semiconductors, for example, whose revenues are approximately 50 percent generated by customers in the automotive market, says it’s already sold out for the entire year, confirming that the demand hasn’t changed at all in the last months.
And NXP says it expects the third quarter (this is the current quarter) revenue to be as high as $3.5 billion, which is well above the $3.32 billion analyst estimate, as per Bloomberg data. In other words, NXP will continue to run at full power to make chips, especially as the demand in the automotive market isn’t recording any decline.
Indeed, carmakers continue to struggle with the very constrained inventory.
Ford, for example, has recently confirmed that the chip shortage has substantially impacted the production of some models sold in Australia, including the Mustang, the Fiesta, and the Focus. As a result, the company has decided to pause the orders for these models until it manages to improve its existing chip inventory levels.
The world’s number one car manufacturer Toyota also strives to find a way to reduce the disruptions caused by a series of factors, including, of course, the lack of chips.
The company has reduced its August production target from 850,000 vehicles to 700,000 units, confirming that its assembly lines are running at reduced power because of the chip crisis. Furthermore, the Japanese brand has also suspended production at six plants and nine lines, once again as the chip inventory is depleted so the manufacturing must stop until new units arrive.
NXP Semiconductors, for example, whose revenues are approximately 50 percent generated by customers in the automotive market, says it’s already sold out for the entire year, confirming that the demand hasn’t changed at all in the last months.
And NXP says it expects the third quarter (this is the current quarter) revenue to be as high as $3.5 billion, which is well above the $3.32 billion analyst estimate, as per Bloomberg data. In other words, NXP will continue to run at full power to make chips, especially as the demand in the automotive market isn’t recording any decline.
Indeed, carmakers continue to struggle with the very constrained inventory.
Ford, for example, has recently confirmed that the chip shortage has substantially impacted the production of some models sold in Australia, including the Mustang, the Fiesta, and the Focus. As a result, the company has decided to pause the orders for these models until it manages to improve its existing chip inventory levels.
The world’s number one car manufacturer Toyota also strives to find a way to reduce the disruptions caused by a series of factors, including, of course, the lack of chips.
The company has reduced its August production target from 850,000 vehicles to 700,000 units, confirming that its assembly lines are running at reduced power because of the chip crisis. Furthermore, the Japanese brand has also suspended production at six plants and nine lines, once again as the chip inventory is depleted so the manufacturing must stop until new units arrive.
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