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Chip Crisis Still Continues

FTD Limited by FTD Limited
December 9, 2021
Reading Time: 1 min read
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As the chip delivery wait time exceeded five months and broke the record, it remains to be seen whether the pressure on the chip crisis on many automakers will continue.
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As the chip delivery wait time exceeded five months and broke the record, it remains to be seen whether the pressure on the chip crisis on many automakers will continue.

According to data from Susquehanna Financial Groups, chip delivery time increased by four days from October to 22.3 weeks. This marks the highest chip delivery time since 2017, when the company started compiling data.

Many automakers had lowered their production targets for 2021 due to the chip supply crisis this year. Renault said that it will produce 500,000 fewer vehicles in 2021 due to chip supply shortages, but they expect the full-year operational margin rate to be in line with the first half of the year.

Toyota Motors also announced that it would reduce global automobile production by 15 percent in November to 150,000 vehicles due to the shortages and the lack of electrical energy in China.

On the other hand, chip maker Intel thinks that the US International Trade Commission (ITC) ban on imports of Optiplane used in chip production may worsen the chip crisis.

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