Beijing, China – Yesterday, an official with China’s Ministry of Industry and Information Technology said the supply of semiconductors will likely remain tight for the distant future, according to a report by the Beijing Newsroom.
Consequently, many companies are preparing for a year where components are in short supply.
On Jan. 18, Canadian auto parts manufacturer Linamar reported supply chain disruptions that will acutely impact production. This was blamed on rising commodity prices, along with labour and material shortages in a market conditions update released on Jan. 18.
Similarly, Toyota announced on Jan. 18 that the company were reducing production plans from 700,000 to 150,000 units – barely more than a fifth of the original figure. The semiconductor shortage also led Toyota to consider substitutions.
Prior computer chip shortages in 2021 also prompted Stellantis to stop shifts at the Windsor Assembly Plant until Jan. 24, 2022. Approximately 1800 employees would lose their jobs permanently, according to the CBC.
These supply chain issues may ease by the end of the year, according to the Specialty Equipment Market Association. However, prices will likely stay elevated into 2023.
