shortage

China’s factories automate as worker shortage looms

Workers assemble vehicles primarily for the domestic market at a factory operated by Daimler-BAIC Motor’s joint venture, Beijing Benz Automotive (BBAC).

Evelyn Cheng | CNBC

BEIJING — Factories in China are turning to technology to tackle a pending labor shortage.

Per official figures, the country’s working age population has shrunk by more than 5 million people in the last decade as births have dropped – despite a rollback of the controversial one-child policy.

And for the factories that have driven much of modern China’s growth, workers are already in short supply, pushing wages up. That’s forcing companies to relocate or

Read More

Why Is There a Chip Shortage? Covid-19, Surging Demand Cause Semiconductor Shortfall

A six-decade-old invention, the lowly chip, has gone from little-understood workhorse in powerful computers to the most crucial and expensive component under the hood of modern-day gadgets.

That explosion in demand—unexpectedly goosed during the Covid-19 pandemic for certain industries like smartphones and PCs—has caused a near-term supply shock triggering an unprecedented global shortage.

In February, lead times—the duration between when an order for a chip is placed and when it actually gets filled—stretched to 15 weeks on average for the first time since data collection started in 2017, according to industry distributor data from Susquehanna Financial Group. Lead times for

Read More

First microchips, now automotive suppliers risk shortage of seat foam

Carmakers attempting to navigate their way through a shortage of microchips while mitigating the effects of a global pandemic might have a new problem to worry about. The severe winter storms that left thousands without power and water in Texas in February 2021 also shut down the refineries that provide the raw materials in seat foam.

Getting to the root of the problem requires following a surprisingly long supply chain. Foam found in most car seats, under the upholstery, is often made with polyurethane, which is manufactured using an organic compound called propylene oxide. In turn, this industrial liquid is

Read More

How Covid led to a $60 billion global chip shortage for automakers

This photo shows Ford 2018 and 2019 F-150 trucks on the assembly line at the Ford Motor Company’s Rouge Complex on September 27, 2018 in Dearborn, Michigan.

Jeff Kowalsky | AFP | Getty Images

Automakers across the globe are expected to lose billions of dollars in earnings this year due to a shortage of semiconductor chips, a situation that’s expected to worsen as companies battle for supplies of the critical parts.

Consulting firm AlixPartners expects the shortage will cut $60.6 billion in revenue from the global automotive industry this year. That conservative estimate includes the entire supply chain — from

Read More

Tesla Briefly Halted Model 3 Production in CA over Parts Shortage

  • Tesla halted the Model 3 production line at the Fremont factory for two days due to parts shortages.
  • Other automakers have been feeling the pinch of a semiconductor shortage that’s caused production delays.
  • Tesla CEO Elon Musk shared information about the shutdown via Twitter but did not elaborate on what parts may have caused the issue.

    Tesla isn’t immune to supply-chain issues. On Twitter, CEO Elon Musk announced that the Model 3 line at the Fremont, California, facility had been shut down for two days, Monday and Tuesday of this week, and had restarted production on Wednesday, February 24. The

    Read More

    Biden’s latest effort to address the global microchip shortage

    Biden’s executive order launched a 100-day review of supply chains for four critical products: semiconductor chips, large-capacity batteries for electric vehicles, rare earth minerals and pharmaceuticals.

    The order also directs six sector reviews, modeled after the process used by the Defense Department to strengthen the defense industrial base. It will be focused on the areas of defense, public health, communications technology, transportation, energy and food production.

    The United States has been besieged by supply shortages since the onset of the pandemic, which squeezed the availability of masks, gloves and other personal protective equipment, hurting frontline workers.

    The chip shortage, which

    Read More