Semiconductor chip shortage hits global manufacturing activity

The scarcity prompted the US President to sign an executive order to address the issue, ater he pledged to seek $37b in funding for legislation to supercharge chip manufacturing in the United States

A global semiconductor chip shortage has caused a major delay in manufacturing activity, with automakers cutting down on production and electronic device makers struggling to keep up with a pandemic-led surge in demand for phones, TVs, and gaming consoles. The scarcity prompted US President Joe Biden to sign an executive order to address the issue after he pledged to seek $37 billion in funding for legislation to supercharge chip manufacturing in the United States.

Both General Motors and Ford said they will cut more vehicle production due to a semiconductor chip shortage that has roiled the global automotive industry.

Earlier, GM had said that due to the global semiconductor chip shortage, it is building certain 2021 light-duty full-size pickup trucks without a fuel management module, hurting those vehicles’ fuel economy performance.

GM had also extended production cuts at three North American plants, adding a fourth to the list due to chip shortage. Said shortage could shave up to $2 billion from 2021 profit Ford Motor has said it will, for now, assemble its flagship, highly profitable F-150 pickup trucks and Edge SUVs in North America without certain parts and idle two assembly plants due to the global semiconductor chip shortage.