Car makers around the world are having to halt production due to a shortage of chips.
And it`s partly thanks to the Trump administration`s war on Chinese tech firms.
In the U.S., production has been curtailed at Ford, Subaru and Toyota plants.
Elsewhere it`s hit firms including Volkswagen, Nissan and Fiat Chrysler.
Different factors have come together to create a perfect storm.
Consumers stuck at home have been stocking up on laptops, gaming consoles and other gadgets, leaving chip supplies tight.
Worldwide, they`ve also bought more cars than expected, further straining supply.
And then there`s the Trump administration`s moves against key Chinese chipmakers.
China`s Semiconductor Manufacturing International was hit with U.S. restrictions in December.
At least one automaker then moved production to Taiwan`s TSMC - only to find that it was overbooked.
One auto supplier confirmed to Reuters that TSMC has been unable to keep up with demand.
Now experts say the shortage is likely to last six months.
It just takes time to ramp up production of semiconductors, which require complex, expensive factories.
In the meantime makers are giving high-end cars the priority for precious chips, leaving cheaper vehicles stuck on the production line.
Video Transcript
- Car makers around the world are having to halt production due to a shortage of chips. And it's partly thanks to the Trump administration's war on Chinese tech firms. In the US, production has been curtailed at Ford, Subaru, and Toyota plants. Elsewhere, it's hit firms including Volkswagen, Nissan, and Fiat Chrysler.
Different factors have come together to create a perfect storm. Consumers stuck at home have been stocking up on laptops, gaming consoles, and other gadgets, leaving chip supplies tight. Worldwide, they've also bought more cars than expected, further straining supply.
And then there is the Trump administration's moves against key Chinese chip makers. China's Semiconductor Manufacturing International was hit with US restrictions in December. At least one automaker then moved production to Taiwan's TSMC, only to find that it was overbooked. One auto supplier confirmed to Reuters that TSMC has been unable to keep up with demand.
Now experts say the shortage is likely to last six months. It just takes time to ramp up production of semiconductors, which require complex expensive factories. In the meantime, makers are giving high end cars the priority for precious chips, leaving cheaper vehicles stuck on the production line.
