Mazda plans production suspension due to chip shortage

Mazda has announced plans to implement a production suspension at its Hofu Plant No. 1 in Japan for ten days during July 2021, due to difficulties procuring components that use semiconductors.

The chip shortage seems to be hitting car makers the worst, as demand outstrips supply. It’s being blamed on the increased worldwide demand for consumer electronic devices during the COVID-19 pandemic and the fact that chip manufacturers themselves have had partial shutdowns.

Roughly 89 per cent of revenue for one leading Taiwanese chipmaker comes from the computing, phone and connected devices industries, with car firms responsible for just three per cent. This puts car makers at a relative disadvantage as semiconductor makers prioritise their largest clients.

Some car makers have already altered which models in their line-ups will have fully digital dashboards and navigation systems fitted. Experts predict the supply issue may take as long as two years to resolve.