Oil Price by Tsvetana Paraskova - Feb 08, 2021
Amid a global shortage of semiconductors, the U.S. auto manufacturing industry is scaling back production this month, including that of the top-selling U.S. vehicle.
China’s soaring imports of semiconductors, the rise in the electronics industries, and the jump in technology use during the pandemic, combined to create a perfect storm on the global semiconductor market, whose supply chain is strongly interconnected.
Detroit’s Big Three announced this month that they would be reducing production at some factories in the United States, Canada, and Mexico, as the severe shortage of supply of semiconductors and microchips is affecting the global automotive supply chain.
The growing importance of technology in new vehicles—with more computer technology and infotainment—has started to feel in recent months the increased significance of semiconductors.
“Semiconductors are the new oil,†Rory Green, Economist - China, the Koreas, and Taiwan at investment research firm TSLombard, said in a note last week.
According to estimates from TS Lombard and CEIC, the value of China’s imports of semiconductors exceeded the value of its oil imports five years ago and has been rising since.
More:
https://oilprice.com/Energy/Energy-General/Car-Makers-Slammed-By-Semiconductor-Shortage.html