Although chip manufacturers are trying to diversify their supply chains, global chip production still has not reached a sufficient level. According to the latest report of AutoForecast Solutions, although the chip crisis has subsided, it is still unresolved.
The global chip crisis continues
According to the latest data, North American automakers have had to cut nearly 20,000 vehicles from their production schedules this week alone due to chip shortages. According to AutoForecast Solutions’ latest estimate, these production cuts are indicative of a shortage of supplies and microchips at nearly 70,000 factories worldwide. According to AFS, which has been tracking the impact the microchip shortage has had on automakers since the chip crisis began in 2021, companies around the world are having to cut back on their auto production programs.
Asia appears to be the hardest hit, with China and the rest of the continent accounting for about 69 percent of production cuts globally so far this year. Based on current data, AFS estimates that around 2.78 million vehicles will be affected by the chip crisis by the end of the year, slightly up from 2.77 million a week ago. Therefore, these cuts show that the chip crisis and supply shortage still continue. On the other hand, it should be noted that the current estimates are relatively small, besides the production cuts of approximately 14.9 million lost in 2021 and 2022.
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