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July 24, 2022 07:00 AM

The latest numbers on the microchip shortage: A lull in the storm

After months of production setbacks because of scarce microchips, automakers appear to be getting some relief

Lindsay Chappell
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    Automakers around the world are catching a break from the global shortage in microchips this week, with factories trimming only about 31,000 vehicles from their schedules, according to the latest forecast from AutoForecast Solutions.

    That is one of the smallest weekly reductions in global output stemming from chip shortages in several months.

    European auto plants, which have been taking a hit on production so far this year, expect no schedule reductions this week, according to AFS.

    The industry has been working to correct the problem through various means, including assembly workarounds and the push for increased chip capacity. Last week, SkyWater Technology Inc. of Minnesota said it will invest $1.8 billion (all figures in USD) to construct a new chip production plant in West Lafayette, Ind. And this month, Bosch announced it will spend $3 billion on new chip capacity and research facilities in Europe.

    Doug Del Grosso, CEO of seating supplier Adient, told Automotive News Europe last week that he is seeing encouraging signs on chips.

    “We are seeing our customers’ schedules stabilize,” Del Grosso said. “That’s due to a combination of factors: More capacity is coming online; there is less disruption due to COVID at semiconductor factories; and our customers are getting more intelligent in the way that they are applying semiconductors to their vehicles.”

    The breakdown
     2022 YEAR TO DATE2022 PROJECTED
    Europe*1,027,4001,381,800
    North America952,6001,138,000
    Rest of Asia546,300755,100
    China*121,500226,700
    South America*100,400102,100
    Middle East/Africa*39,10051,300
    Total2,787,3003,654,100
    *Unchanged from a week earlier

    Source: AutoForecast Solutions Inc. autoforecastsolutions.com

    AutoForecast Solutions Inc.

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