Semiconductor shortage forces Ford to halt production

The semiconductor shortage has hit automobile companies all over the world

The halt in production at Ford India’s plant in Maraimalai Nagar, near Chennai, will continue for about another week, media reports said on Monday.

The reports said the reason for halt in production is due to semiconductor shortage. The plant was initially shut for three days from January 14, but was later extended.

When DH contacted Ford India, a statement from the company said: “The global semiconductor shortage will impact vehicle production at Ford in the coming months. This issue is affecting the entire automotive sector and expected to continue for at least the first half of 2021.

“We are working closely with suppliers to address production constraints tied to the global semiconductor shortage and working to prioritise key vehicle lines for production, making the most of our semiconductor allocation,” it added.

It is not only Ford India that is facing the brunt of the semiconductor shortage. One of Ford’s facilities in the USA had to be shut down due to production problems arising from the semiconductor shortage.

Recently, Toyota had stopped production in China due to the shortage of semiconductors.

Volkswagen, Audi and Honda have had to reduce work hours or stop production in Germany and the UK.

One of the reasons for this global semiconductor shortage is believed to be the increased demand for electronic devices like smartphones, laptops, etc. during the Covid-19 pandemic. Cars, these days, are heavy on electronics and the increased demand in several sectors has led to the shortage.