Chip crunch sets back major tech & auto giants' production
Global chip sales rose 27% in the third quarter of 2021 year-on-year, amounting to $145 billion, Izvestia newspaper has reported, citing data from the Semiconductor Industry Association (SIA).
According to the association, the supply of microchips during that period exceeded historical highs, not only in monetary terms, but also in quantitative terms. SIA said that high demand for chips and the expansion of production capacity were among the major factors in the growth.
Nevertheless, electronics manufacturers are constantly reporting a shortage of chips. US tech giant Apple said last week it has cut its iPad output by half in order to use semiconductor chips, which are currently in short supply, for its iPhone 13 production. Production of iPads was down 50% from the company’s initial plans for September-October.Also on rt.com Apple cutting iPhone Christmas production by 10 million units due to chip shortage – media
Global automakers have also been raising alarms over the growing semiconductor deficit. Russia’s biggest car manufacturer AvtoVAZ says that it’s monitoring the supply situation on a daily basis, and building a schedule for the production of lines accordingly. “Unfortunately, we do not expect an early resolution of the problem,” the company said.
The crisis is now expected to cost the global automotive industry $210 billion in revenue in 2021, according to consulting firm AlixPartners.
Experts have already warned that the semiconductor chip shortage will extend into 2022 and potentially beyond.
For more stories on economy & finance visit RT's business section