It is expected to continue during the second quarter of the year

Technology .. The lack of "electronic chips" is hitting technology companies and cars

  • Honda was forced to stop production for a week due to a shortage of semiconductor supplies.

    A.F.B.

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The global shortage in the availability of electronic chips continues to affect business internationally. Samsung, Honda and Volkswagen have warned of the continuing disruption of supply, according to a CNN report.

The auto industry was at the forefront of the victims of this crisis, but it extended to include technology companies as well.

Samsung's co-CEO Koh Dong-jin told investors that the South Korean tech giant was facing a problem in its supply chain.

He added that the company is striving to address the scarcity of semiconductors, believing that the company could continue to face such problems in the second quarter of this year.

The company is also considering delaying the launch of a new generation of one of its best-selling phones, the Galaxy Note, this year, although Koh Dong Jin said that the company is moving to simplify its product range.

Major industrial companies from the German "Continental" for auto components to "Renesas Electronics Corp" and "Innolux Core" have warned in recent weeks that the shortage in the supply of electronic chips may last longer than expected, due to the demand that exceeded expectations for electronic devices. Like smartphones and computer games against the background of the Coronavirus pandemic.

Car manufacturers, which have already been hit by a shortage of these connectors in recent months, have criticized their worsening conditions due to this ongoing crisis.

Honda and Volkswagen said the computer chip crisis impeded their operations, especially in the United States.

Honda confirmed that it would temporarily suspend production next week at most of its North American factories, partly due to a shortage of semiconductors.

A company spokesperson said: “We continue to manage a number of supply chain issues related to the impact of (Covid-19), congestion at various ports, lack of microchips and severe winter weather over the past several weeks, and as a result, factories from Ohio to Ontario are expected to turn dark this week. Next, somehow all of our auto factories in the US and Canada will be affected. ”

Other major automakers, including Ford, Fiat, Chrysler, GM and Nissan, have also cited the same problem.

The average car needs between 50 and 150 chips, which are increasingly used in the driver assistance and navigation control systems.

"In 2021, we will continue to suffer from a shortage of semiconductors," said Volkswagen CEO Herbert Des.

Deiss estimated that the automaker "may already lose 100,000 cars this year, which will be very difficult to recover in the second half."

And Deiss doesn't see the problem fading anytime soon, either.

He said, "We see more restrictions in the near future, due to difficult climatic conditions in America, where we have had two or three semiconductor plants off the grid for more than a week or so."

This is in line with estimates by analysts, United Bank of Switzerland, who previously expected a large production loss for Europe's largest carmaker in the first three months of the year.