Chip shortages spread around the world
According to the latest data from AutoForecast Solutions (AFS), as of May 22, the global auto market has lost about 1.811,800 units of production this year due to chip shortages. AFS expects cumulative production cuts in the global auto market to climb to 2.622 million units this year.
On a regional basis, Europe remains the world's biggest cumulative loss of core production so far this year, at 787,700 units, with falling production in the region contributing to the decline. Cumulative registrations of new cars in Europe in the January-April period fell 13 per cent year on year to 3.58m, according to data released by the European Automobile Manufacturers' Association (ACEA) on the 18 May. Monthly sales in Europe have fallen for the 10th consecutive month as the industry struggles with a supply-chain crisis and consumers are deterred by record inflation.
Last week, global automakers cut production by 91,700 vehicles due to chip shortages. North America took the biggest hit, cutting production plans by about 87,500 vehicles. Production in Europe was cut by 4,200 units.
Last week, U.S. President Joe Biden and South Korean President Yoon Seok-yol toured Samsung's semiconductor plant, the world's largest. "Biden's recent trip to South Korea may help provide a long-term answer to the North American chip supply problem," Sam Fiorani, VICE president of global automotive forecasting at AFS, said in an email. "Addressing the semiconductor shortage is a long-term problem because as cars become more complex, the number of chips used in cars may not decrease. In the short term, however, the auto industry will continue to compete for limited chip capacity with other sectors that use some of the more profitable chips. Our expectations for a solution to the chip shortage this year have faded, and there may not be a full recovery in chip supply in 2023."