Shortage of chips halts Volvo Cars production in China and the US

A global shortage of semiconductor chips halts and adjusts the Swedish carmaker Volvo Cars production in China and the United States for parts of March, Reuters reports.

Volvo Cars which is owned by China’s Geely Holding said in an email statement, “We expect the situation to become critical during the second quarter and have therefore decided to take measures to minimize the impact on production while working daily to improve the situation.”

A semiconductor chip is an electric circuit with many components such as transistors and wiring formed on a semiconductor wafer. Semiconductors are an essential component of electronic devices and the shortage has affected carmakers globally.

The shortage stems from a confluence of factors as carmakers compete with the consumer electronics industry for chip supplies.

Both Scania and AB Volvo have stated that the shortage of chips has also hit their production.

About Mette Larsen

ScandAsia Journalist • Scandinavian Publishing Co., Ltd. • Thailand

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