HIGHLIGHTS:
- The automotive industry has been hardest hit by chip shortages, leading some automakers to suspend production.
- Other sectors such as smartphone, electric appliances, game consoles industry, etc have seen demand skyrocket.
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“That could be a problem that lasts until 2023,” Paul Meeks, portfolio manager at Independent Solutions Wealth Management, told CNBC. According to him, Wall Street is underestimating the shortage of semiconductors globally.
Significant impact on the automotive sector
According to CNBC, chip shortages affect the automotive industry more than any other industry. Recently, many automakers have warned in their financial statements that chip shortages will worsen. Both Ford Motor and General Motors predict that the second quarter will be the hardest hit as they were forced to suspend operations due to a lack of needed parts.
The chip dilemma is occurring at a critical juncture in Daimler’s electric shift. The German carmaker debuted production-ready vehicles Mercedes-Benz EQE and EQB SUV, as well as the Smart Concept and Mercedes-Maybach EQS SUV Concept, at the Munich auto show. The Mercedes-Benz EQG Concept was also revealed, along with the forthcoming all-electric G-Class with four motors.
In early September, General Motors announced that the chip crisis had forced it to halt production at most of its assembly plants in North America including the CAMI Assembly plant in Canada, San Luis Potosi in Mexico, and Lansing Delta Township Assembly, Spring Hill Assembly.
A variety of other sectors are affected
Chips are a vital component of every electronic device today, from PlayStation 5 machines to toothbrushes, washing machines, alarm clocks, cars, cell phones, home appliances, TVs, laptops, and many other goods. Demand for all of them has skyrocketed. Many people refer to this as the chip crisis, or “chipageddon.”
Meanwhile, Mr. Meeks at Independent Solutions Wealth Management emphasized that problems are getting worse in the coming year-end peak shopping season. Many consumers may be frustrated by not being able to purchase in time. “This will also deal a blow to suppliers of Christmas goods,” he warned.
Van Anh
FURTHER READING
Apple – The giant of the technology world also did not escape the chip crisis
