World Industrial Reporter

Innovation Delivered Daily

  • Innovation
    • Innovation Article Archive
    • Innovative Companies
    • Innovation Strategies
    • New Equipment Innovations
  • New Products
  • Additive Manufacturing
  • Markets
    • Market Trends
    • Tradeshow Reports
    • White Papers
  • Logistics
  • Newsletters
World Industrial Reporter » Innovation » Chip Dearth Causes Auto Industry to Halt Production

Chip Dearth Causes Auto Industry to Halt Production

January 12, 2021

https s3 ap northeast 1.amazonaws.com psh ex ftnikkei 3937bb4 images 9 1 3 4 31664319 6 eng GB Cropped 16101959782019 03 04T164918Z 228581157 RC136927A280 RTRMADP 3 GERMANY AUTOS VW

A global semiconductor shortage is causing auto manufacturers like Toyota and Volkswagen to cut back on production, notes the Nikkei Asian Review.

Semiconductors are crucial for the auto industry as electric vehicles and autonomous driving become more popular.

According to KPMG Japan, an EV uses twice the number of semiconductors compared to that of a gasoline-powered vehicle.

Experts attribute this current dearth to chips finding their way into other products such as smartphones and communication base stations.

Toyota for one has decided to reduce production of its Tundra pickup truck at its Texas plant due to the semiconductor shortage.

It hasn’t yet released details on the size or time frame regarding the production cut, but is looking into whether the lack of semiconductors will affect other vehicles.

The Japanese giant has always been at the forefront of explaining its production plan for the upcoming year. But the global chip crunch has caused Toyota to struggle to formalize a plan.

Nissan too is cutting down on the production of its flagship vehicle ‘Note’ by 5,000 units in January – a reduction it says may continue through February.

Honda has also decided to reduce production of its Fit subcompact car by 4,000 units this month at a factory in Japan’s Mie Prefecture.

Among the German automakers, Volkswagen has announced that it would cut production in China, North America and Europe.

In Germany, the company also halted production of its Golf model starting in December and lasting through mid-January.

According to the Nikkei, most automakers have been scrambling, as deliveries by German auto parts suppliers like Continental and Bosch have been delayed due to the chip shortage.

Moreover, semiconductors procured from major companies such as Dutch-American NXP Semiconductors and Switzerland-based STMicroelectronics have also lagged.

A major cause of the bottleneck comes from the semiconductor industry’s horizontal configuration, in which production and development are separate, with each manufacturer specializing in a particular task.

Chipmakers often place orders with contract manufacturers instead of fabricating chips in-house. It takes time to manufacture semiconductors while reconfiguring lines to accommodate varying specifications, making it difficult to turn out different chips at the same time.

According to the latest report, Continental has disclosed that “it will possibly take half a year” until supply for vehicle semiconductors normalizes.

Image and content: Nikkei Asian Review

Share on

Filed Under: Innovation

New Film Absorbs Sweat, Powers Wearables
The World’s First Rollable Smartphone
Avatar

About Aruna Urs

Aruna is an industrial journalist. He writes on innovations that emanate at the intersection of science and engineering having a profound impact on the manufacturing sector.

Follow me
Suppliers

State-of-the-Art Draw-Wire Displacement Sensors

wireSENSOR WPS-K100 draw-wire sensors measure displacements and distances in industrial environments. Their robust and modular design combined with an excellent price-performance ratio make them ideal for OEM and series applications. The sensors are used in mobile machines, cranes and lifting technology.
View Supplier Email this Supplier

Flexible Coaxial Cable Assembly for Microwave Applications

Flexible coaxial cable assembly for microwave applications up to 145 GHz DC. The assembly’s low attenuation and reflectance makes it suitable for long-product and armor processing specifications, while maintaining compatibility with various coaxial connector and narrow-pitch multipole coaxial connection system standards.
View Supplier Email this Supplier

Levitating, Contactless and Intelligent

With XPlanar, Beckhoff enables new degrees of freedom in product handling: Levitating planar movers float over individually arranged planar tiles. The result: maximum flexibility in product transport, increased plant output and efficient production with batch size 1 in all industries.
View Supplier Email this Supplier

High Accuracy, Non-Contact, Absolute Linear Sensor

Santest Model GY series are high accuracy, non-contact, absolute type linear sensors employing magnetostrictive, Wiedemann effect. An ultra-sonic wave generated by a moving magnet near a magnetostrictive wave-guide on which the sonic wave propagates to the head of the transducer.
View Supplier Email this Supplier

Subscribe

Get the latest WIR reports straight to your inbox.

Free Newsletter Subscription

Find us on the social web.

  • About Us
  • Contact Us
  • Advertise
  • Terms Of Use
  • Privacy Policy
FREE NEWSLETTER SUBSCRIPTION

Get the latest WIR reports straight to your inbox.

  • Innovation Article Archive
  • Innovation Strategies
  • Innovative Companies
  • New Products
  • Additive Manufacturing
  • Market Trends
  • Tradeshow Reports
  • White Papers
  • Logistics
  • Newsletters
  • Fun Stuff
  • Industry Links
Follow us

© 2021 Thomas Publishing Company. All rights reserved.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site you agree.OkRead more