A shortage of auto chips could impact 672,000 units of global light vehicle production in the first quarter, data firm IHS Markit said on Wednesday, warning that the disruption could extend into the third quarter.
Automakers around the world are shutting assembly lines because of problems in the delivery of semiconductors, which have been exacerbated in some cases by the former Trump administration's actions against Chinese chip factories.
"Because the cause of these constraints is the result of increasing demand from OEMs and limited supply of semiconductors, it will not be resolved until both forces are aligned," said Phil Amsrud, senior principal analyst-ADAS, Semiconductors and Components, IHS Markit.
China will be the most hit in the first quarter at nearly 250,000 units, according to IHS.
AutoForecast Solutions, which tracks industry production plans, on Tuesday forecast production volume impact of 964,000 vehicles in 2021 due to semiconductor shortage.
On Tuesday, a group of 15 U.S. senators including Majority Leader Chuck Schumer and Republican John Cornyn urged the White House to work with Congress to address the global semiconductor shortage.
The senators -- from key auto states like Michigan, Ohio, Tennessee, Wisconsin, Illinois, Indiana and South Carolina -- said in a letter to the White House warned that the "shortage threatens our post-pandemic economic recovery."
"We believe that the incoming administration can continue to play a helpful role in alleviating the worst impacts of the shortage on American workers," the senators wrote.