[machstang]

The shortage is hitting so hard that it lead to production cuts and ultimately layoffs.

Ford, Other Auto Makers Cut Output, Idle Workers on Chip Shortage

A chip shortage that has disrupted vehicle production in other parts of the globe is reaching U.S. shores. Ford is planning on idling its Louisville, Ky., factory.

www.wsj.com

 

[ReturnOfTheMack]

From the looks of it this isn't going to end soon for some companies. Could be deep into the year before things change.

"With lead times of six to nine months, the semiconductor industry has not been able to scale up fast enough to meet this unexpected growth in automotive demand," parts supplier Continental (CTTAF) said in a statement sent to CNN Business on Tuesday.

The bottlenecks are expected to continue "well into 2021, causing major disruptions in Continental's production." The company said that an internal task force supervised by senior management is managing the "critical situation."

Automakers account for only about 12% of all semiconductor demand globally, putting them in relatively weak purchasing position, said Arndt Ellinghorst, a senior analyst at Bernstein.

Bosch, the world's largest car parts supplier, said in a statement Tuesday that it is doing "all it can" to keep customers supplied. "In this respect, we are in close daily contact with our suppliers and customers," it added.

A global chip shortage is hitting carmakers at the worst possible time

The world's largest carmakers are facing a critical shortage of semiconductors that threatens to hamstring production just as the industry tries to stage a comeback from a sales slump caused by the pandemic.

www.cnn.com

 

[Diogenes]

Am I concerned? No since I hold Semiconductors in my portfolio. I do hope that the supply catches up and they don't leave any business on the table as I am long F as well.