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Report: Chip Supply, Testing Woes to Curb Vehicle Production

Semiconductor shortages and the delayed packaging and testing of the chips will cause production of global light vehicles to drop by five million this year, data firm IHS Markit said on Thursday, marking the biggest cut to its outlook in nine months.

Citing supply chain challenges, IHS said it was cutting its light vehicle production forecast by 6.2 percent for 2021 and 9.3 percent for 2022, to stand at 75.8 million units and 82.6 million units, respectively.

Packaging and testing operations within the semiconductor sector in Malaysia were impacted due to the government’s lockdown measures in early June, IHS said, compounding difficulties in an already constrained supply chain.

“Our interpretation of the situation in Malaysia, which is responsible for 13 percent of the global supply of semiconductors for the automotive industry, has become more pessimistic,” IHS said.

The full story from Reuters is here.

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