Worst Moment of the Chip Shortage Happening Right Now, Experts Claim

The global semiconductors shortage is a problem that nearly every industry sector is struggling to deal with. Still, according to Goldman Sachs, this is only because the crisis has reached its worst moment.
Carmakers turned to production halts due to the lack of chips 1 photo
In other words, it can’t get any worse than that, and Goldman Sachs’ chief Asia economist, Andrew Tilton, believes things will slowly return to normal, beginning with the second half of the year.

Speaking with CNBC, Tilton explains that car production has been hit hard by the global chip crisis and the struggles could continue, especially if Taiwanese semiconductor companies are hit by more disruptions, as it happened recently.

Our analysts believe we’re probably in the worst period of that right now. That is, we’re seeing the biggest disruption downstream (in) industries like auto right now and that will gradually ease over the back half of the year,” Tilton was quoted as saying.

While several carmakers temporarily are halting their production because they don’t have enough chips for the models they build, General Motors has recently confirmed that it’s increasing shipments of some specific models to dealers in the United States and Canada.

As a result of GM’s ongoing efforts to prioritize semiconductor usage, its success engineering solutions that maximize the utilization of chips as well as the pull-ahead of some projected semiconductor deliveries into the second quarter, the company now expects its first-half financial results to be significantly better than the first-half guidance previously provided,” the company said, adding that some facilities could still be impacted by the semiconductor shortage.

Industry experts have warned that the global health crisis would continue into 2022, with recent research suggesting that up to 4 million cars could be impacted due to the production halts parent companies turn to in order to deal with the shortage.

Goldman Sachs believes the latest disruptions in the supply chain won’t have a major impact on carmakers across the world despite the slowdowns encountered at some factories.


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