Semiconductor chip shortage: Industries face further output cuts and delays

The semiconductor chip shortage, which has put most industries, especially the auto sector, on a bumpy road, is unlikely to resolve soon.

According to a recent report by Nomura, spread of the delta variant amid the low vaccination rates in many ASEAN economies and China’s zero-tolerance Covid strategy have prompted governments to impose restrictions and order factory or port closures.

That apart, shortage of raw materials and unavailability of containers in August have lengthened lead times – the time taken between ordering a chip and its delivery. This is especially true in countries that are a part of manufacturing supply chains, like Vietnam, South Korea and China.