Chip supply, testing woes to curb car production, says IHS Markit

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

LONDON: 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.

Packaging and testing operations within the semiconductor sector in Malaysia were affected due to the government's lockdown measures in early June, IHS said, compounding difficulties in an already constrained supply chain. "The two-and-a-half-month backlog that has built up since June will take time to clear and is anticipated to extend well into 2022."

IHS said the semiconductor snafus have resulted in lost production of 1.44 million units in the first quarter and a further 2.6 million units in the second quarter.

 

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