The industry-wide chip shortage is causing massive auto production cuts around the globe. Sweden-based automaker owned by China’s Geely Holding Volvo Car Group announced a 10.6pc decrease in sales in August against the same month of 2020.
General Motors (GM) has also announced more output cuts across the Americas after August this year. Starting Sep 6, the automaker will stop production at Wentzville, Missouri; Lansing Delta Township; Spring Hill, Tennessee, and Ramos, Mexico for two weeks and at its assembly plants in Canada and San Luis Potosí, Mexico, for another 15 days.
As carmakers continue to announce cutbacks, China is ramping up chip production. The country’s Semiconductor Manufacturing International Corp (SMI) will invest $8.9bn to build a chip plant in Shanghai to a monthly capacity of 100,000 12-inch wafers in the Lingang Free Trade Zone.