5-speed listening (Semiconductors - Level 6)

Global semiconductor shortage hurts car industry



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The automotive and other industries around the globe are facing production challenges due to a shortage of semiconductors. A global semiconductor shortage has caused car giant General Motors to halt production at all but four of its plants in North America. GM owns a number of popular car brands, including Cadillac, Chevrolet and GMC. A GM spokesperson told the Detroit Free Press news agency that the company is focused on trying to resolve its supply-chain difficulties. He said: "Although the situation remains complex and very fluid, we remain confident in our team's ability to continue finding creative solutions to minimize the impact on our highest-demand and capacity-constrained vehicles."

Semiconductors are an indispensable part of many of the gadgets and electrical products we use in our everyday lives. Sony, Toyota, Ford and other multinational companies are reporting production hitches due to the current dearth in supply. One reason for the shortage is the COVID-19 pandemic. Staff shortages in factories that manufacture the chips in China, South Korea and Taiwan have negatively hit production. The website engadget.com said companies would experience challenges for the foreseeable future. It reported: "With the shortages expected to continue until at least 2023, and no immediate solutions forthcoming, GM likely won't be the last company to change its production schedule."

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