Chip Shortage Globally Hit Car Makers And Tech Giants, Companies Raise Concerns Over Revenue Loss

The global chip shortage has hit international automakers along with tech giants such as Apple Inc and Samsung Electronics. Companies are raising concerns over the increasing costs of production and the revenue losses arising from this crisis.

On the carmakers front, Honda Motors has stopped production at three of its plants in Japan. Similarly, BMW AG has reduced shifts in its factories in Germany and England as Ford Motors has brought down the forecast of its entire year’s earnings as the dearth of chips is projected to continue till the next year as well.

In fact, even Caterpillar Inc has warned that it will fall short of fulfilling the demand for machinery that is utilized by industries related to the construction and the mining sectors.

Contrarily, chip suppliers are recording rising sales as they promise further investments worth billions of dollars in order to build capacity that align with the surging demands.

Seoul-based KTB Investments & Securities Co analyst Lee Han-joon pondered upon this issue as he told Bloomberg, “There are too many uncertainties about when chip supplies will improve, and that’s making it difficult for automakers. For semiconductor makers, the auto industry isn’t really seen as one of their key customers and that’s putting the carmakers in a much tougher position in securing supplies.”