Chip shortage hits General Motors production

Sun Online Desk

4th February, 2021 01:13:52 printer

Chip shortage hits General Motors production

General Motors (GM) is the latest automaker to feel the effects of a global semiconductor chip shortage.

The automotive giant said it would cut production entirely at three of its factories in North America next week.

In addition, a factory in South Korea would run at half capacity, the carmaker said on Wednesday.

The production cut comes as US chipmaker Qualcomm's quarterly results missed expectations.

The company suggested that solving the problem could be tricky.

The shortage has led several other automakers to cut production, including Volkswagen, Ford, Subaru, Toyota and Nissan.

IHS Markit has predicted that production in the global car sector will be 672,000 vehicles lower than anticipated in the first quarter.

The forecasting firm expects the shortage to last into the third quarter.

Taiwan, which has one of the world's largest chipmaking industries, is at the centre of efforts to resolve the shortage.

Taiwanese chipmakers have promised to increase production while the government has urged them to address the problem.