The latest numbers on the microchip shortage: Another big jump in 2022 estimated production cuts

AutoForecast Solutions’ weekly estimate of the number of vehicles removed from production because of the semiconductor shortage this year jumped significantly for the second consecutive week.

AFS, which closely monitors the impact of the chip shortage on production, said about 230,700 vehicles have been cut at plants worldwide this year, up about 23 percent from a week earlier. It reported a 25 percent week-over-week jump in its previous estimate.

Signs indicate the shortage will persist in the coming months, even as more microchip production comes on line. 

The U.S. Commerce Department last week revealed the results of a study of 150 companies that showed that there remains a “significant, persistent mismatch in supply and demand for chips,” with companies seeing the problem lasting for at least another six months.

“There is not a lot of good news” in the survey, said Commerce Secretary Gina Raimondo, Reuters reported.

The U.S. House of Representatives last week unveiled a 2,900-page bill that includes $52 billion to subsidize manufacturing and development of microchips. It is expected to vote this week.

Source: AutoForecast Solutions Inc. autoforecastsolutions.com