Due to a shortage of chips, Daimler has suspended production at two German factories

Source: Daimler 

The global chip shortage is far from over, and Daimler is the latest big name to be forced to halt its production operation temporarily.

Mercedes-Benz has recently announced that car manufacturing activities at two German plants will be halted for seven days, with about 18,500 workers working fewer hours as the company struggles to cope with a shortage of chips for its cars.

The car production lines at both the Bremen and Rastatt plants were suspended on April 23, with operations expected to resume on April 30. Daimler, on the other hand, claims that the decision would have little impact on special projects.

The company has also stated that it is difficult to predict when things will return to normal because the shortage of chips remains a big problem for everyone in the industry.

The global chip shortage is the result of the rising demand for electronics, which has been intensified by the global health crisis that began in early 2020.

With a significant amount of people transitioning from corporate offices to ad hoc working conditions at home, the market for devices such as PCs, notebooks, smartphones, tablets, and others, all of which is designed to keep them productive and from the comfort of their own homes, has significantly increased chip orders for the largest foundries.

Most chipmakers are now operating at full capacity. However, they are still unable to match current demand, especially because device manufacturers are now attempting to create inventories to help them cope with any possible shortages that may still occur.

Meanwhile, other firms are coming in to assist automakers. Intel recently announced that it would begin producing chips specifically for the automotive industry, with production lines expected to be ready in around 9 months.

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments